The United Nations Conference on Trade and Development (UNCTAD) has announced that it is to cancel over 1 trillion USD of debt owed by developing countries.
Highlights
- According to the UNCTAD, over 64 low-income countries spend more on debts than their health systems.
- They are now struggling with growing debt burden to plummet prices of oil, weakening of local currencies and exports.
- On the other hand, they have COVID-19 crisis to address health issues.
Key Findings
- According to UNCTAD, the high-income countries have debt obligations between 2 trillion USD and 2.3 trillion USD in 2020.
- The middle- and low-income countries have debt obligations between 700 billion USD and 1.1 trillion USD.
G20
- Similar steps were taken by the G20 countries as well.
- The G20 groupings agreed to suspend bilateral debt payments by the poorest countries of the world till the end of the year.
- The G20 grouping has called for “Global Debt Deal” that will grant one-year debt standstill.
- After one year, the developing world shall pay back the debt with interest.
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