IMF urges world’s richest countries to save poorest www.rt.com
The International Monetary Fund (IMF) has warned that 60% of the world’s poorest nations are at high risk of, or already in, debt distress, double the share in 2015.
“Low-income countries will find it increasingly difficult to service their debts,” as the G20’s debt service suspension initiative is expiring at the end of the year and interest rates are poised to rise, IMF Managing Director Kristalina Georgieva and the head of the strategy, policy, and review department, Ceyla Pazarbasioglu, said in a blog post on Thursday.
They added: “We may see economic collapse in some countries unless G20 creditors agree to accelerate debt restructurings and suspend debt service while the restructurings are being negotiated.”
The IMF officials called for the urgent measures in order to reorganize the loans and thus help poorer nations. The expiration of the debt service relief will force “participating countries to resume debt service payments,” they said. “Quick action is needed to build confidence in the framework and provide a road map for helping other countries facing increasing debt vulnerabilities.”
Over $10.3 billion has been provided so far in relief to more than 40 eligible countries within the G20 debt plan, which was launched last year.
The expiration of the debt service relief will force “participating countries to resume debt service payments,” the IMF officials said. “Quick action is needed to build confidence in the framework and provide a road map for helping other countries facing increasing debt vulnerabilities.”
According to World Bank data, the coronavirus pandemic has been a major blow to the poorest nations, causing a recession that could push more than 100 million people worldwide into extreme poverty.
Published Date:2021-12-06