World Bank on Tuesday be warned debt crisis faced by developing countries May intensify adding that external debt of developing economies have more From doubling a decade ago to $9 trillion in 2021.
The pandemic has forced many countries Takes on more Borrowing, World Bank President David Malpass has warned earlier that world he is facing Fifth wave of The debt crisis.
many countries We are already facing Or at risk of debt distress with to rise global inflation and rising interest rates.
And the global growth This slows down sharply yearand with to increase risk of world Recession in 2023 Mediumone of Most internationally synchronized episodes of… policy tighten” in 50 years old, said the World Bank.
A comprehensive approach is needed reduce debtincrease transparency, and facilitate faster restructuring countries can focus on support spending growth and reducing poverty.” Malpass added.
said the World Bank in It is the poorest release countries Eligible for borrowing from the International Development Association (IDA) now spend more from ten of their export earnings for long term service public and externally secured debt.
This is the highest ratio since 2000, added Based in Washington development lender.
external debt of IDA countries also Almost tripled in Contract leading up Until 2021.
“on the roof, debt Indicators seem to have improved in 2021, the World Bank said, adding that “this is not the case for IDA countries. “
Weaknesses emphasize urgency need to improve debt Transparency bank He said.
