IMF says 60% of low-income countries are in debt distress

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IMF says 60% of low-income countries are in debt distress
IMF says 60% of low-income countries are in debt distress
14 September, 11:03Technology
Some 25% of emerging market economies and 60% of low-income countries are now in debt distress or close to it, said International Monetary Fund Managing Director Kristalina Georgieva (pictured).

Preventing an "explosion of debt problems", according to Georgieva, is the responsibility of large creditors - such as China.

"My message to the big creditors, to China, to the private sector is that the bigger your stake, the bigger your responsibility. It is in your interest as creditors to prevent the problem from exploding”, - Georgieva quoted Reuters as saying at a Center for Global Development event.

In addition, the IMF itself offers its assistance. Georgieva indicated that his new resilience and long-term sustainability trust fund is now at $40 billion and will be given to countries in need by early 2023. Emergency funding will soon be transferred to those republics that are facing rising food prices due to the Ukrainian conflict. Already 16 countries have applied for assistance, the total amount of which is $90 billion.

Earlier, during a virtual event on food security, UN Under-Secretary-General for Humanitarian Affairs Martin Griffiths said that $1 billion is needed to prevent starvation in Somalia. If assistance is not increased, two regions of the country, including more than 400 thousand children will face famine as early as October-December.

Before that, the organization emphasized that with the further development of the food crisis, the world community will face mass starvation, uncontrolled migration and political destabilization.

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