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Debt Distress

All articles tagged with #debt distress

international-relations1 year ago•1 min saved

"IMF Warns of 'Debt Distress' as Maldives' China Borrowings Raise Risk"

The Maldives, heavily indebted to China and with a shifting allegiance from India, has been warned by the IMF of high risk of "debt distress." President Mohamed Muizzu, who has received support from China, faces challenges in managing the country's foreign debt, which is largely owed to Beijing. The IMF emphasized the need for urgent policy adjustments to address the elevated fiscal deficits and public debt. Despite economic recovery from the pandemic, the Maldives' outlook remains uncertain, with risks tilted to the downside. The nation's strategic location in the Indian Ocean and its reliance on tourism further complicate its economic and geopolitical situation.

via Hindustan Times|

#china #debt-distress #imf

international-relations-economy1 year ago•1 min saved

"IMF Warns of High Risk of Debt Distress for Maldives Amid China Borrowings"

The Maldives, heavily indebted to China and with a shifting allegiance from India, is at high risk of "debt distress," according to the IMF. President Muizzu has expressed gratitude for China's assistance, but the IMF warns of the need for urgent policy adjustments to address the country's fiscal deficits and public debt. With tourism as a major economic driver, the nation faces uncertainty despite recovery from the pandemic, and its heavy reliance on Chinese debt poses significant risks.

via NDTV|

#china #debt-distress #foreign-policy

international-relations-economics1 year ago•1 min saved

IMF Warns of High Debt Distress Risk for Maldives Amid Growing Ties with China

The IMF has warned that the Maldives is at high risk of debt distress due to heavy borrowing from China and a shift in allegiance from India under President Mohamed Muizzu, who has received increased funding from Beijing. The IMF emphasized the need for urgent policy adjustments to address the country's elevated fiscal deficits and public debt. This warning comes as several South Asian countries, including Pakistan and Sri Lanka, grapple with economic crises resulting from heavy borrowing from China as part of President Xi Jinping's Belt and Road Initiative.

via IndiaTimes|

#china #debt-distress #foreign-policy

economics2 years ago•2 min saved

Developing Economies Face Looming Debt Crisis, World Bank Warns

The World Bank has warned that surging interest rates are causing record levels of debt for the world's poorest countries, hindering investments in public health, education, and infrastructure. Low- and middle-income countries paid $443.5 billion towards principal and interest in 2022, the highest level in history, with projections of a 40% increase in 2023 and 2024. Over half of low-income countries are facing debt distress, prompting calls for debt restructuring to avoid a "lost decade." The variable interest rates and a stronger US dollar have made repayment more challenging, leading to an increase in government defaults. The mounting debt burdens have also made it difficult for developing countries to attract new investment and financing, with new loan commitments declining by 23% in 2021. Efforts for debt relief have been slow, with China criticized for being an obstacle to debt restructuring agreements.

via The New York Times|

#debt-burdens #debt-distress #developing-economies

global-economy2 years ago•2 min saved

Record Debt Burdens Haunt Developing Economies, Warns World Bank Economist

Developing countries spent a record $443.5 billion in 2022 to service their public debt, a 5% increase from the previous year, as global interest rates surged, according to the World Bank. The cost of servicing debt for the world's poorest nations could surge by as much as 39% in 2023 and 2024, putting them at high risk of debt distress. The World Bank highlighted that there were 18 sovereign defaults in 10 developing countries in the last three years, more than the total in the previous two decades combined. Multilateral banks have increased efforts to help developing countries refinance their debt as new financing options from private sources shrink.

via CNBC|

#debt-distress #developing-nations #global-economy

economy2 years ago•3 min saved

Global Growth Warning: UN Urges Action on Inequality and Inflation Targets

The United Nations has warned of "stalling and divergent" global growth in 2024, with the global economy projected to rise slightly from 2.4% to 2.5%. The UN's Trade and Development Report highlights significant economic headwinds, including a potential slowdown in the US economy, stagnant European investment, and rising debt distress in developing countries. The report also calls for more regulation and oversight of food companies, citing concerns of profiteering and the need for a transparent food trade system.

via CNBC|

#debt-distress #economy #eurozone

global-economy2 years ago•5 min saved

Fed's Bowman Signals More Rate Hikes Needed to Tackle Inflation and Achieve Target

The Federal Reserve's campaign to fight inflation by raising interest rates over the past 18 months has had ripple effects on emerging markets and may have increased the risk of economic and social instability, particularly in lower-income nations. The rising U.S. interest rates have led to currency depreciation, debt distress, and limited borrowing capacity for developing countries. This has widened the wealth gap, increased poverty, and exacerbated income inequality. The World Bank warns of a "multi-year period of slow growth" for developing nations, which will further exacerbate poverty rates. The impact of higher interest rates in the U.S. can have detrimental effects on the economic, political, and social well-being of these countries.

via Fortune|

#debt-distress #emerging-markets #federal-reserve

economics2 years ago•2 min saved

World Bank Chief Optimistic About Global Growth and Debt Progress in 2023

The World Bank has slightly raised its 2023 global growth outlook to 2% from 1.7% due to an improved outlook for China's recovery from COVID-19 lockdowns and better-than-expected performance by advanced economies. However, the slowdown from stronger 2022 growth will increase debt distress for developing countries. World Bank President David Malpass warned that turmoil in the banking sector and higher oil prices could again put downward pressure on growth prospects in the second half of 2023. Malpass also said that technical meetings with Chinese officials this week can help "break the ice" on potential movement on badly needed debt relief for poor countries.

via Reuters|

#china #debt-distress #developing-countries

politics2 years ago•2 min saved

US Vice President Harris to Address China's Influence in Africa During Visit

US Vice President Kamala Harris will visit Ghana, Tanzania, and Zambia to discuss China's influence and debt restructuring in Africa. The US seeks to rival China's investments in the continent and will announce public and private sector investments during the tour. Harris will also meet with young leaders and business representatives to discuss climate change and food insecurity. The US has concerns about China's "opaque" business dealings in Africa, but is not asking African partners to choose between the two countries.

via Al Jazeera English|

#africa #china #debt-distress