Countries eligible to borrow from the International Development Association (IDA)the World Banks fund for the poorest countriesentered the COVID-19 crisis already facing elevated debt levels and weak fiscal positions. The pandemic is now placing enormous pressure on these countries to finance additional expenditures for relief and recovery amid shrinking fiscal revenues and limited access to sustainable financing. This intensifies debt risks at a time when these countries are already vulnerable.
Almost one year into the crisis, the proportion of IDA countries (assessed using the Low-Income Country Debt Sustainability Framework) in or at high risk of debt distress has climbed to 55 percent from 50 percent, continuing the deteriorating tr…
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