External Debt of Poorer Countries Stands at Biggest of All Time

Based on Word Bank estimate, the total external debt of poorer counties has reached a record of 744 billion dollars in 2019 with an increase in 9.5 per cent. Even before COVID-19 pandemic rising public debt particularly in poorer countries was a cause of concern and this sovereign debt got intensified due to the pandemic.

G20 endorsed Debt Service Suspension Initiative (DSSI) in April to support 73 poorer countries by suspending payments on official bilateral debts until end of this year. World Bank Group president David Malpass previously urged extending this time frame to the end of 2021 and asked the leaders of the poorest countries to speak out about the need of lighter debt burden from creditor nations.

According to the latest International Debt Statistics (IDS) released on Monday by World Bank Group, the total external debt of countries raised to record in 2019. The rapidity of debt accumulation for these 73 countries marked nearly twice of other poor and middle-income countries." Highlighting an urgent need for creditors and borrowers alike to collaborate to stave off the growing risk of the crisis triggered by the COVID-19 pandemic" Report noted.