The World Bank (WB) alerted this Tuesday to a scenario in which the increase in interest rates and the slowdown in world growth lead a large number of developing countries into a debt crisis.
According to the latest report from the international financial organization, cabout 60% of the poorest countries already shows a high risk of over-indebtedness or is directly in that situation.
The poorest countries that qualify for loans from the International Development Association (IDA), a member of the World Bank, now spend more than a tenth of their export earnings to service their public and guaranteed debt long-term public.
At the end of 2021, the external debt of these economies amounted to 9 trillion dollars, more than double that of a decade ago. During the same period, the total external debt of poor countries nearly tripled to $1 trillion.
According to the report, by the end of 2021, IDA client country payments for long-term public and publicly guaranteed external debt servicing amounted to $46.2 billion, or 10.3 percent. of its exports of goods and services and 1.8% of its gross national income.
These percentages show a considerable increase compared to 2010, when they stood at 3.2% and 0.7%, respectively.
"The debt crisis facing developing countries has intensified"World Bank Group President David Malpass said in a statement.
"A comprehensive approach is needed to reduce debt, increase transparency, and facilitate faster restructuring so that countries can focus on spending that supports growth and reduces poverty. Otherwise, many countries and their governments will face a fiscal crisis and political instability, and millions of people will fall into poverty."he added.
At the end of last year, 21% of the external debt of countries eligible for IDA financing came from private creditors, an increase of 16 percentage points compared to 2010.
In addition, the proportion owed to non-Paris Club government creditors (such as China, India, Saudi Arabia, the United Arab Emirates, and others) has risen markedly.
According to the report, growing debt vulnerabilities highlight the urgent need to improve transparency and provide more complete information on debt, in order to strengthen the capacity of countries to manage related risks and use their resources wisely. efficient for sustainable development.