The poor, indebted countries are facing converging economic pressures and many find it impossible to pay back their debt or access new financing.
Some of the world’s lower-income nations face a serious debt crisis which will complicate their efforts to recover from the pandemic-induced global recession.
Zambia has seen its external debt surge to nearly $12 billion this year.
Hedge funds and banks are not ready to give even temporary debt relief to one of the poorest countries in the world.
The impact could be severe in low-income countries, which have more workers in the informal sector and significant foreign debt.
European governments are scrambling to put together hundreds of billions of euros to save lives, companies, and families from going bankrupt as countries hit hardest by the virus are also those that can least afford the costs, like Italy and Spain.
As fears of a global recession grow as a result of the Covid-19 spread, African countries, along with the World Bank, have issued calls for a moratorium on debt payments.
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