The worlds poorest countries face ballooning debt service payments, record high refinancing costs, limited access to markets, and severely reduced capital inflows. potentially leading to reversals in development outcomes.
In this context, the current global debt relief architecture has focused mostly on countries with solvency problems, including under the Common Framework, and that indeed remains critical. However, less attention has been placed to a particular group of countries: low income and lower middle-income countries that are likely to experience temporary liquidity pressures in 2024 and 2025 in the context of a very high level of external debt repayments. Thes…
Read the full article at: https://blogs.worldbank.org/voices/urgent-need-address-liquidity-pressures-developing-countries