International Monetary Fund borrowers face debt strain
WASHINGTON: Nearly half of the countries eligible for concessional financing from the International Monetary Fund (IMF) are either in debt distress or at high risk of it, while their interest payments have quadrupled since 2013, Transparency International (TI) says. In a report released ahead of the IMF and World Bank Annual Meetings in Bangkok from Oct 12 to 18, the anti-corruption organisation…
The International Monetary Fund (IMF) borrowers face significant debt strain, with nearly half of the eligible countries either in debt distress or at high risk of it, according to a report by Transparency International (TI). The organization warns that secretive and corrupt practices in sovereign borrowing can burden future generations with loans that benefit the powerful.
The report urges governments and international lenders to enhance transparency in borrowing, implement safeguards against corruption, and empower borrowing countries in decision-making processes related to their debt obligations. The report highlights the growing pressure on public finances in low- and middle-income countries, with at least 8% of government revenue across these economies allocated to servicing debt.
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