G24 chair warns of growing debt risks for developing nations
The debt vulnerabilities of many developing economies are a “major barrier” to inclusive growth, the chair of the Group of 24 nations said yesterday, warning their governments were increasingly contending with mounting debt burdens. Speaking to reporters at the annual meetings of the International Monetary Fund and World Bank in Bangkok, Taiwo Oyedele said estimates … The post G24 chair warns of…
The chair of the Group of 24 nations, Taiwo Oyedele, warned of significant debt burdens facing developing economies during the International Monetary Fund and World Bank annual meetings in Bangkok. Oyedele, who is also Nigeria's finance minister, stated that developing nations are paying roughly $500 billion more for their debt compared to developed countries.
The chair cited fiscal deficits and supply shocks from the Middle East war, surging borrowing costs, and rising food prices due to a "super El Niño" as contributing factors. These issues have put immense pressure on heavily indebted developing countries, affecting their progress towards inclusive economic growth and job creation.
Members of the G24 urged the IMF and World Bank to provide more accessible and affordable concessional financing to vulnerable nations. G24 director Iyabo Masha highlighted recent improvements in the sovereign debt architecture as potentially helping countries resolve debt crises more quickly. Senegal, for instance, is nearing a final resolution with its creditors, having aimed for an agreement in principle by December.
Meanwhile, the IMF reduced its growth forecasts for Latin America and the Caribbean, noting limited progress from the AI boom compared to other economies.
Written by urgent.news from Ghanaian Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
