WASHINGTON: Delays in dealing with the growing debt burden in poor countries seems unlikely to be resolved by the G20, a top World Bank official warned.
As interest rates are starting to rise around the world, putting more pressure on borrowers, the Group of 20 finance ministers are due to meet in Indonesia this week.
But World Bank chief economist Carmen Reinhart is skeptical there will be a resolution soon to help address unsustainable debts.
“The stalling is really, really problematic,” she told AFP in an interview. She warned that the average length of a government debt crisis is nine years, which would create a “lost decade” for already vulnerable countries.
During the Covid-19 pandemic the G20 put in place a debt service suspension initiative to help countries as they ramped up borrowing to deal with the twin health and economic crises, but that program ended in December.
www.brecorder.com/news/40154627/world-bank-economist-warns-of-dangers-of-ignoring-growing-debt