More than 60 countries are on verge of bankruptcy due to rising debt burden

Boston – Due to the ever-increasing debt burden, there are signs of emerging economic crisis in more than 60 countries of the world. If the debt of these countries is not restructured or they do not get loan waivers, they may go bankrupt, warns a new report of the US think tank. The debt burden of the global economy is continuously increasing, and leading groups, along with advanced countries, are demanding restructuring of the debt of developing countries. However, this issue has not been resolved yet.

The Global Development Policy Center of Boston University in the US has released a new report. Due to increasing debt burden, more than sixty countries are on verge of bankruptcy This report titled ‘Now or Never’ has considered economic instability, increasing amounts of debt, and rising interest rates to provide the financial assistance required for capital. For this, the ‘Global Development Policy Centre’ clarified that a study of more than 100 emerging and developing economies across the globe was needed. Out of these, the debt burden of 95 countries has increased significantly, and attention has also been drawn to the fact that a total of 62 countries are in economic crisis.

It includes small countries in the ‘Oceania’ region, part of Africa and the Pacific Ocean. Of these, 33 countries must pay loan instalments to one or more countries or banks in the next four years. Of the total loans taken by eight countries, information has come to light that China provided 50 percent or more of the loans. Due to increasing debt burden, more than sixty countries are on verge of bankruptcy If these countries are not given loan waivers or their debt is not restructured, they may face financial bankruptcy, the US think tank has warned.

The amount of borrowing has increased in the last two or three years, and issues like the spread of the coronavirus, the ‘cost of living crisis’, and climate change have been responsible for this. With the increase in debt burden, increase in interest rate, decline in currency value, and low growth rate, developing countries are failing to repay their debts. Due to this, it has been underscored that the countries concerned are not making necessary provisions for other important sectors along with the sudden disasters.

In a report released by the United Nations last year on the issue of debt, attention was drawn to the five-fold increase in public debt in the global economy in the last two decades.

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