April 21

‘We Should Be Worried’: Finance Leaders Warn Rising Interest Rates Are Squeezing Low-Income Countries

By Elliot Smith

Leaders of several global financial bodies warned that rising interest rates are increasing pressure on low-income developing countries, around 60% of which are now in or at high risk of debt distress.

Public debt burdens in developing countries have been exacerbated in recent years by back-to-back global crises, with Russia’s invasion of Ukraine coming on the heels of the Covid-19 pandemic, while many heavily-indebted nations are also dealing with idiosyncratic pressures from climate events or conflict.

Photo courtesy of Jernej Furman.

Source: CNBC (link opens in a new window)

COVID-19, global development, lending