This year, the world's poorest countries will have to sharply increase payments to creditors, about 60 percent of low-income countries are in need of debt restructuring. This conclusion was made by experts from the World Bank, according to the Financial Times.
A total of 74 such countries must pay $35 billion, 45 percent ($10.9 billion) more than they paid in 2020 (latest available data).
Sri Lanka is named as the main candidate for the state default. Ghana, El Salvador and Honduras can support the next epidemic of non-payments. According to the World Bank, the world was on the verge of a debt crisis due to the fact that vulnerable countries during the pandemic borrowed money not from international organizations, but in the capital markets.
The president of the organization noted that the sharp increase in payments comes just at a time when poor countries do not have the resources to do so. He stressed that the desire of creditors to take advantage of the situation from the very beginning increased the risk of disorderly defaults.
According to experts, current debt problems could cost countries decades of development. After all, so far they have only one way out to avoid a default - this is to negotiate with creditor countries to soften the conditions, and then start the same negotiations with private creditors. Chad, Zambia and Ethiopia have already resorted to such a solution, but it is difficult to accept it.
Secretary General of the UN Conference on Trade and Development Rebeca Greenspan noted that the country's public statement about the problem with debt repayment means a sharp reduction in investment. So the authorities are ready for any choice, just not to take such a step.