Low-income countries are facing their biggest bills for servicing foreign debts in 25 years, which could put spending on health and education at risk. Debt repayments for 91 of the world’s poorest countries will take up an average of over 16% of government revenues in 2023, rising to almost 17% next year. This is the highest level since 1998 and follows a steep rise in global borrowing costs last year. The rise in debt servicing costs will fuel an ongoing debate over debt forgiveness. Debt Justice, a debt campaign group, calls for “fast and comprehensive” relief on external debts, including changes to laws governing bond contracts to force private creditors to take part in debt cancellation. However, some experts argue that today’s problems cannot be tackled in the same way as in the past, as most borrowers want to keep their access to multilateral lenders and private-sector creditors.

>Source link>

>>Join our Facebook Group be part of community. <<

By hassani

Leave a Reply

Your email address will not be published. Required fields are marked *