Debt Crisis Looming for Developing Countries

Larry Elliott writes that the West is starting to wake up to the prospects of a debt crisis in developing economies, having recently shown their ability to react to the collapse of Silicon Valley Bank.

He argues that this week's IMF focus has shifted towards how rich countries could help developing economies - with as many as 50 of them potentially risking debt default. He notes that promises of debt default given during the pandemic have yet to be fulfilled, with only Chad currently in receipt of any debt relief.

Additionally, the presence of China and how this complicates the issue of debt relief is discussed, with the former reluctant to write off debt, if the World Bank and private creditors aren't willing to do similar.

Please read: World’s poorest nations spend 16% of revenue on debt, the highest in 25 years

Please read: Wealthy west has little excuse after finally waking up to global debt crisis