The World Bank has published the International Debt Statistics Report. Reminding that governments responded to the new type of coronavirus epidemic with huge fiscal, monetary and financial incentive packages, the report stated that these measures aimed to respond to the health emergency, reduce the impact of the epidemic and put countries on the path of recovery, while increasing the debt burden of low-income countries.
According to the report the debt of low-income countries rose 12 percent in 2020 to a record $860 billion. We understand that even before the epidemic, many low- and middle-income countries were in a vulnerable position with slow economic growth and high levels of public and external debt. It was reported that the external debt stocks of low and middle-income countries increased by 5.3 percent in 2020 and reached $8.7 trillion.
David Malpass, the president of the World Bank talked about the issue: “ There is a need for a comprehensive approach to the debt problem, including debt reduction, restructuring and transparency. Sustainable debt levels are vital to economic recovery and poverty reduction.”