GENEVA: According to the UN, 54 countries, which are home to more than half of the world’s poorest population, are in urgent need of debt relief as a result of cascading global crises.
In a recent report, the United Nations Development Programme cautioned that “the risks of inaction are catastrophic” as dozens of poor countries faced a debt crisis that was only getting worse.
Without prompt assistance, the poverty rate in at least 54 countries would increase, according to UNDP, and “critical investments in climate adaptation and mitigation will not happen.”
Given that the impacted nations were “among the most climate-vulnerable in the world,” this was concerning.But UNDP chief Achim Steiner told reporters in Geneva that despite repeated warnings, “nothing has happened so far, and the risks have been mounting.”
“That problem is becoming worse and might become an international development catastrophe impacting dozens of countries,”Converging economic strains are being felt by the impoverished, debt-ridden nations, and many of them are unable to repay their debts or obtain new financing.
‘Volatility’
The UNDP states that “market conditions are rapidly shifting as coordinated fiscal and monetary shrinkage and low GDP are encouraging instability around the world.”
According to the UN organisation, many of the impacted nations had debt problems brewing even before the Covid-19 outbreak struck.The rapid increase in debt over the past decade had, according to the statement, “constantly been underestimated.
“Negotiations under the G20 Common Framework, which was established during the pandemic to aid heavily indebted countries find a way to restructure their commitments, have been proceeding slowly. The freeze on debt repayment during the Covid crisis to lessen their load has expired.
