Debt of developing countries

The debt of developing countries refers to the external debt incurred by governments of developing countries, generally in quantities beyond the governments' ability to repay. "Unpayable debt" is external debt with interest that exceeds what the country's politicians think they can collect from taxpayers, based on the nation's gross domestic product, thus preventing it from ever being repaid. The causes of debt are a result of many factors.

Some of the current levels of debt were amassed following the 1973 oil crisis. Increases in oil prices forced many poorer nations' governments to borrow heavily to purchase politically essential supplies. At the same time, OPEC funds deposited in western banks provided a ready source of funds for loans. While a proportion of borrowed funds went towards infrastructure and economic development financed by central governments, a proportion was lost to corruption and about one-fifth was spent on arms.

Debt abolition

Latest News for: World debt


DMO: 2022 Borrowing Plan Increased by N1trn to Meet Fuel Subsidy Cost

This Day 28 Sep 2022
According to her, the federal government had to resort to borrowing to fund the budget due to revenue challenges, explaining that the government was deploying World Bank and International Monetary Fund (IMF) tools to ensure the sustainability of Nigeria’s public debt....

Fiscal programme could be more efficient as India spending a large part of revenues on debt servicing every year: Andrew Wood, S&P Global Ratings

The Times of India 28 Sep 2022
Right now, we see India as a modest external creditor to the world and we also know that the government does not have essentially foreign currency denominated debt and is able to be funded entirely in local currency markets,” says Andrew Wood, Director, Asia-Pacific Sovereign Ratings, S&P Global Ratings....

Inflation-linked bonds proposed to boost market confidence

B & FT Online 28 Sep 2022
“The central bank, which is the largest issuer of nominal bonds, bears a high degree of inflation risk when servicing its debt,” he added ... “Economies prone to supply shocks may find that ILBs increase the debt service at times when the economy stagnates, worsening government’s financial position,” the World Bank added....

Risk of homeowners and businesses again facing spectre of default

The Times/The Sunday Times 28 Sep 2022
... and the government have become habituated to taking on debt at very low costs and budgeting for a world of rock-bottom borrowing costs....

IMF urges UK to ‘re-evaluate’ tax cuts on inflation concerns

Hindustan Times 28 Sep 2022
But the plan wasn’t accompanied by spending cuts, raising concerns that it would swell government debt and add to inflation that is already running at close to a 40-year high ... The November statement will set out further details of the government’s plan and ensure that debt falls as a share of gross domestic product “in the medium term,” she said....

We’re worryingly reliant on tax revenue that just a few multinationals bring. But don’t worry, we have plenty of money – for now

Irish Independent 28 Sep 2022
... in the garden.Mr Donohoe reminded everyone that while the economy has “strong foundations” we also happen to have one of the largest rates of national debt per capita in the world, with every person owing the equivalent of €44,000 in our €225bn debt burden....

Readout of National Security Advisor Jake Sullivan’s Meeting with Indian External Affairs Minister Jaishankar

The White House 28 Sep 2022
... of Russia’s aggression against Ukraine and its impact on food and energy insecurity around the world....

'Biggest crash in world history': Robert Kiyosaki issues another dire warning and now avoids ‘anything ...

Yahoo Daily News 28 Sep 2022
'Biggest crash in world history' ... “This is going to be the biggest crash in world history, we’ve never had this much debt pumped up,” he says in a Kitco News interview earlier this month ... They can’t be printed out of thin air like fiat money and their value is largely unaffected by economic events around the world....

Forget crashing share prices. I’m holding these passive funds for the next 30 years

The Motley Fool 28 Sep 2022
One passive fund I plan to hold for decades is Xtrackers MSCI World Quality Factor ... After all, many supposedly great value stocks are cheap for a reason (like high debt, poor trading). Another ETF I own is iShares MSCI World Small Cap. This fund invests in a portfolio of minnows from around the world....

US envoy sees ties with Pakistan at ‘inflection point’

Dawn 28 Sep 2022
When asked what he thought the world would look like in five years, the ambassador remarked there was a need to build resilience in the face of unexpected events ... I don’t see a stabilising picture (of the world) anytime soon with the war on Ukraine restricting commodity supplies, and China’s presence in the Pacific region,” Mr Blome said....

How the escalating climate crisis is impacting global livelihoods

GreenBiz 28 Sep 2022
That is the stark warning from three new reports this week that all pointed to the same stark conclusion — the climate crisis is already having a severe impact all around the world, and unless "massive and immediate" action is taken, future prospects for global businesses and communities remain bleak....

The nation’s debt limit serves no purpose. It should be eliminated | Bruce Ledewitz

Longview News-Journal 27 Sep 2022
The world is awash in dollars chasing goods and services ... Part of the reason America can spend beyond its means is that people know that our debt will be redeemed and is backed by the largest economy in the world ... For their own good, the good of the country, and of the world, that is exactly what Democrats should do—get rid of the debt limit.....

China uses manipulation to change its image in Africa

Greek City Times 27 Sep 2022
So these loans are likely to be those that were nearing their end, which means the African countries would continue to suffer under China’s poor debt trap policy, the European Times reported ... Financial experts have asserted that the BRI has become a big contributor to the debt distress in Africa and the rest of the world....

Most Viewed

File - Russia's President Vladimir Putin and Russian Defense Minister Sergei Shoigu, right, attend the opening of the Army 2022 International Military and Technical Forum in the Patriot Park outside Moscow, Russia, Aug. 15, 2022.
AP / Sputnik, Kremlin Pool Photo via AP,

Putin’s regime may fall – but what comes next?

The Guardian | 27 Sep 2022
Abdul Salam Hanafi, a deputy prime minister in the Taliban's interim government, left, speaks with acting Foreign Minister of Afghanistan, Taliban official Amir Khan Muttaqi during talks involving Afghan representatives in Moscow, Russia, Wednesday, Oct. 20, 2021.
AP / Alexander Zemlianichenko, Pool

Taliban sign Russia deals for oil products, gas and wheat

The New Arab | 28 Sep 2022
In this photo released by Taiwan's Ministry of Foreign Affairs, former U.S. Secretary of State Mike Pompeo arrives in Taipei, Taiwan, Wednesday, March 2, 2022.
AP / Taiwan Ministry of Foreign Affairs

Taiwan: Era of 'blind engagement' with China must end - Pompeo

Ruptly | 27 Sep 2022