According to the report The group, made up mainly of African countries, currently spends 10.3 percent of its annual export earnings on debt repaymentWhile in 2010 this rate was only 3.2 percent.
The public debt of developing countries has more than doubled in the past decade, rising to $9 trillion. In the poorest countries, growth has increased even faster: in ten years it has tripled to $1 trillion.
During the pandemic, the Debt Service Suspension Initiative (DSSI) was created at the initiative of developed countries. The group, which includes mainly African countries, confirmed $8.9 billion in debt restructuring through 2021. However, this is barely a tenth of the $99 billion that was repaid in 2021.
World Bank President David Malpass says a comprehensive approach is needed to reduce debt, increase transparency and promote faster restructuring.
Some countries are forced to spend unrealistically high amounts of money to pay off debts. Ghana, Sri Lanka and Zambia pay creditors between 70 and 100 percent of total annual budget revenue.
Cover image: Getty Images
