UNDP warns debt servicing costs are hitting spending on health, education and social protection
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Global finance ministers are being urged to give poor countries debt repayment breaks, to cushion the developing world from the impact of high interest rates.
“Countries that could invest in safety nets over the last three years have prevented a significant number of people from falling into poverty. In highly indebted countries, there is a correlation between high levels of debt, insufficient social spending, and an alarming increase in poverty rates.
Today, 46 countries pay more than 10 percent of their general government revenue on net interest payments.
“We need new mechanisms to anticipate and absorb shocks and make the financial architecture work for the most vulnerable.”
In the absence of credible debt relief, these countries are not able to deliver this ‘temporal and targeted’ support.”
