Reuters: IMF: Poor nations could face 'economic collapse' unless G20 extends debt relief
LONDON, Dec 2 (Reuters) - Poorer nations could be facing economic collapse unless the world's richest economies agree to step up debt relief efforts, International Monetary Fund (IMF) chief Kristalina Georgieva warned on Thursday.
Some 60% of low income countries are already in or at high risk of debt distress, compared to less than half that in 2015, Georgieva wrote in a blog co-authored with Ceyla Pazarbasioglu, director at the IMF Strategy, Policy and Review Department.
"We may see economic collapse in some countries unless G20 creditors agree to accelerate debt restructurings and suspend debt service while the restructurings are being negotiated."
Low income countries' debt to non-Paris Club members The G20 group of major economies launched the Debt Service Suspension Initiative (DSSI) in spring 2020, designed to offer a temporary freeze in payments to low-income countries, many of which had already faced hefty debt burdens pre-pandemic.
However, that initiative is running out at the end of the year. Progress on another G20 plan, the Common Framework for Debt Treatments designed to reduce the overall debt burdens of poor countries, has been very slow.
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WNU editor: The possibility that countries like China will extend debt relief or forgiveness is zero.
As for the G20, the IMF is recommending massive increases in interest rates to combat inflation .... IMF urges the Fed to speed up monetary policy tightening amid mounting inflation fears (CNBC).
IMF Warns of Economic Collapse in Poor Nations Unless G20 Extends Debt Relief And Forgiveness
The G20 Common Framework for Debt Treatments Must Be Stepped Up -- IMF
IMF Warns of Economic Collapse in Poor Nations Without Debt Fix -- Bloomberg
IMF warns of 'economic collapse' unless G20 extends debt relief -- IBTimes/AFP
Rabobank: The IMF Warning Of "Economic Collapse" Should Get Headlines -- Zero Hedge
The governments of the world are failing their people. Surprised? Anyone paying attention is not surprised. Governments by and large are among the most corrupt of institutions. Are the nations of the world going broke? You can bet that the senior leadership of those nations have millions if not billions squirreled away in offshore accounts!
ReplyDeleteIMF (aka US taxpayers) extends debt releif and forgiveness to poor nations with few if any strings attached. Same. Old. Shit. Several of those countries are in trouble precisely becuase of corrupt leadership. So, make a change in leadership a necessary qualification to receive relief? Hell no, why do that? So, the IMF (aka us taxpayers) is out another few billion dollars, those shithole countries receive a small econonomic boost but retain their corrupt leadership, nothing changes, and they're in the same predicament within a couple years. See how globalism works? It's a sham, a game. Name of that game? SAME. OLD. SHIT. Want to do something about it? Great! Take a number, get in line, and shut the fuck up.
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ReplyDeleteYes I ear this "recommendation? since decades and what? the same for next year.