WorldWorld Bank: Debt of low-income countries reached $ 860 billion in 2020

World Bank: Debt of low-income countries reached $ 860 billion in 2020


AA / Ankara

According to the World Bank, the debt of low-income countries reached a record high of $ 860 billion in 2020, an increase of 12%.

The World Bank report indicates that in the face of the health crisis caused by the Covid-19 pandemic, governments have responded with huge monetary and financial stimulus packages. These measures, which aimed to respond to the health emergency, reduce the impact of the pandemic and put countries on the path to recovery, have contributed to increasing the debt of low-income countries.

Even before the pandemic, many low- and middle-income countries were in a vulnerable position with slowing economic growth and high levels of public and external debt, the report said. The stocks of external debt of low- and middle-income countries, up 5.3%, broke the $ 8.7 billion mark in 2020.

World Bank President David Malpass believes that a comprehensive approach to the debt problem is needed, especially with regard to aspects of debt reduction, restructuring and transparency.

“Sustainable debt levels are vital for economic recovery and poverty reduction,” he said.

* Translated from Turkish by Alex Sinhan Bogmis

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