External debts of poor countries rise to $7.8trn

Total external debt of low- and middle-income countries climbed 5.3 per cent to $7.8 trillion in 2018, according to the World Bank.

As of December 31, 2018, the Debt Management Office put the total external public debt of Nigerian federation at $22 billion.

In a statement from Washington, the Bank explained that while net debt flows (gross disbursements minus principal payments) from external creditors tumbled 28 per cent to $529 billion, the World Bank’s International Debt Statistics 2020 shows.
Although on average the external debt burden of low- and middle-income countries was moderate, several countries have been on a deteriorating debt trajectory since 2009, the report indicates.

The share of low- and middle-income countries with debt-to-GNI ratios below 30 per cent has shrunk to 25 per cent, down from 42 per cent ten years ago. Similarly, the share of countries with high debt-to-export ratios has climbed.

“To grow faster, many developing countries need more investment that meets their development goals,” World Bank Group President David Malpass said.

ALSO READ: No third term agenda for Buhari ― Presidency

“Debt transparency should extend to all forms of government commitments, both explicit and implicit. Transparency is a critical part of attracting more investment and building an efficient allocation of capital, and these are essential in our work to improve development outcomes.”

Debt stocks were driven up by a 15 per cent jump in China, fueled by investor appetite for renminbi-denominated assets.

Excluding the ten largest borrowers (Argentina, Brazil, China, India, Indonesia, Mexico, the Russian Federation, South Africa, Thailand, and Turkey), external debt stocks rose 4 per cent. Sub-Saharan countries excluding South Africa saw debts stocks swell by 8 per cent on average in 2018, and over half the countries in the region have seen external debt stocks double since 2009.

You might also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. AcceptRead More