PanamaTimes

Saturday, Sep 07, 2024

UN Development Chief Raises Alarm Over Debt Distress

UN Development Chief Raises Alarm Over Debt Distress

A top UN official has warned that "urgent" measures are needed to help 52 countries facing debt repayment problems that put some at risk of default.
A top UN official has warned that "urgent" measures are needed to help 52 countries facing debt repayment problems that put some at risk of default.

Achim Steiner, head of the United Nations Development Programme, told AFP that 25 of the 52 were spending more than a fifth of government revenues servicing external debt.

"The situation right now for developing countries when it comes to national debt is indeed very, very serious," Steiner said in an interview on the sidelines of the Least Developed Countries (LDCs) summit in Doha on Saturday.

The UN agency estimates that "52 countries are either in debt distress or one step away from debt distress and potential default," he said.

Steiner did not name the countries involved but the UNDP last week released a report which called for a 30 percent write-off of external debt for 52 countries at 2021 values.

The 52 included Argentina, Lebanon and Ukraine alongside 23 countries from sub-Saharan Africa, 10 from Latin America and the Caribbean, and eight from East Asia and the Pacific.

Steiner said "the financial markets are not paying enough attention" as the 52 account for only three percent of global external debt, but one sixth of the world's population.

Development Shocks

Twenty-five countries spending one fifth of government revenues on debt servicing is "not sustainable", he added.

"Therefore, we have called very clearly for urgent ways to inject liquidity while also restructuring and rescheduling debts, because otherwise we may see country after country falling into that territory of debt distress."

On Saturday, UN Secretary General Antonio Guterres slammed the world's rich countries and energy giants for burdening LDCs with "predatory" interest rates.

Poor nations' debt has multiplied over the past decade because of the coronavirus pandemic, high food and fuel bills and financial crises.

Several have defaulted over the past two years.

Steiner said that African countries such as Nigeria, Mali and Burkina Faso have lost up to 20 years of development progress amid a rise in political violence and government failures to provide basic services, security, health and education.

He said total debt was difficult to establish as more than 60 percent is owed to private creditors.

"Now you have the war in Ukraine, you have the impact on the global food and energy prices and particularly when it comes to debts, the impact of inflation is driving interest rates up," he said.

Rising fuel costs have caused "a short-term shock" for countries struggling to maintain basic fiscal stability, according to Steiner.

And they face growing pressure to invest in renewable energy and combating climate change, the UN official added.

"Inevitably, the ability of poorer countries and middle-income countries to significantly expand in clean energy infrastructure... is being affected," he said, calling for greater international investment in "clean and affordable electricity" for poorer nations.

Steiner said that energy security has become such a hot international topic in the past two years that he expected an "exponential increase" in investment in clean energy infrastructure in the next five years.
Comments

Oh ya 2 year ago
Strange they did not mention the USA. 125% debt to GDP, 31 Trillion in debt and borrowing money every year because they can not balance the budget. But the countries that were buying government debt are starting to sell it and not buy new debt. When the USA can not sell its bonds the shit will hit the fan for the American people. Pensions and free stuff will disappear. And 2nd name one country that is run by blacks that is not a shit hole, just one

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
BRAZIL’S SUPREME COURT MINISTER ORDERS EXPLANATION ON X BLOCKING
Porn streamer OnlyFans paid owner $630mn in dividends
Donald Trump will not face sentencing over his 'hush money' conviction before the US presidential election on November 5, after a Manhattan judge granted his request to delay the proceeding
Return of Brazilian Artworks to Bahia
France Pilots Mobile Phone Ban in Schools
WHO-Led Study Finds No Link Between Mobile Phones and Brain Cancer
Kamala Harris is in Detroit and has a new accent again
EU Rejects Maduro’s Election Win Claim in Venezuela
Former Red Brigades Member Arrested in Argentina After 40 Years on Run
Elon Musk Accuses Brazilian Supreme Court Justice of Election Interference
Universe May Have Had a Pre-Big Bang 'Secret Life'
Ecuador's Narco Violence Threatens Scientists and Conservation Efforts
Brazilian Judge Alexandre de Moraes Blocks Elon Musk's X
Nаkеd American woman gropes security
Tsimane Tribe: Secrets to Health and Slow Ageing
OpenAI Blocks Iranian Group's ChatGPT Accounts for Election Interference
WHO Declares Mpox Global Health Emergency Again
Decline in World Records at Paris Olympics: An Analysis
EU Pressures Elon Musk Over Trump Interview
UN Reports Lowest Global Youth Unemployment Rate in 15 Years
Fatal Plane Crash Near Sao Paulo
Snoop Dogg: The Feel-Good Spirit of the Paris Olympics
McDonald's Worker Sets Restaurant On Fire Over Customer Frustration
Kamala Harris Confirmed as Democratic Candidate for US Presidential Election
Controversies at the Paris Olympics
Elon Musk Accepts Fight Challenge from Venezuelan President Nicolas Maduro
First Case of 'Virgin Birth' in Endangered Shark Species in Italy
G20 Fails to Reach Agreement on Global Billionaire Tax
Mexican Drug Lords El Mayo and El Chapo's Son Arrested in Texas
World's Hottest Day Recorded on July 21
Joe Biden Withdraws from 2024 US Presidential Race
A Week of Turmoil: Key Moments in US Politics
Global IT Outage Sparks Major Concerns
Global IT Outage Unveils Digital Vulnerabilities
Secret Service Criticized for Lack of Sniper Protection During Trump Shooting
Colombian Court Annuls Amazon Tribes’ Carbon Credit Deal
Sunita Williams Safe on ISS, to Address Earth on July 10
Biden Affirms Commitment To Presidential Race
Boeing Pleads Guilty Over 737 MAX Crashes
Beryl Storm Hits Texas, Killing 2 and Causing Major Power Outages
2024 Predicted to Be World's Hottest Year
Macron Faces New Political Challenges Despite Election Relief
Florida Man Arrested Over Attempt to Withdraw One Cent
Anger mounts at Biden’s top team after disastrous debate
Bolivian President Luis Arce Denies 'Self-Coup' Allegations
Steve Bannon Begins 4-Month Prison Sentence
Biden Warns of 'Dangerous Precedent' After Supreme Court Immunity Ruling in Trump Case
Elon Musk Accuses Kamala Harris of Misleading Post on Trump's Abortion Stance
Hunter Biden Sues Fox News Over 'Revenge Porn' Allegations
New York Times Editorial Board Urges Biden to Exit Presidential Race
×