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


Colm McCarthy: 'We cannot blame Brexit alone for the pressing need to balance our books'

Irish Independent 15 Sep 2019
Despite strong underlying growth in tax revenues and a bonanza in receipts from corporation tax, these expansionary budgets ensured that the economic recovery has yet to produce an interruption to the onward march of public debt ... Holders of government debt, and future recruits, are volunteers, including the central bank in Frankfurt....

What’s killing Punjab farmers

Indian Express 15 Sep 2019
The question, however, remains why despite such huge debt waiver, there was no stopping such suicides ... How world is losing fertile land ... “His father, Kulwant Singh, had committed suicide by hanging himself on January 6, 2018, a day before state government launched the first phase of the debt waiver,” she said ... The debt story is common across Punjab....
photo: Russian Presidential Press and Information Office
Russian President Vladimir Putin during the exchange of documents signed during the visit of Prime Minister of India Narendra Modi to Russia, Russky Island, Primorye Territory, 6 September, 2019.

Putin builds war chest as Kremlin digs in for the next crisis

CNN 15 Sep 2019
Since 2014, Russia has increased foreign currency reserves to an eye-popping $500 billion (the fourth highest in the world), paid off its foreign debt, "floated" (or in other words devalued) the Russian ruble to boost the competitiveness of Russian exports, "de-dollarized" ......

Taking a cue from Bangladesh

The News International 15 Sep 2019
External debt at 14 percent of GDP allows Bangladesh greater space for development finance from self-generated income while exports of $40 billion enable a manageable trade balance that underpins currency stability, creating a climate conducive for domestic and foreign investment....

Nature Abhors a Vacuum: Why Trump’s Proposed Negative Rates Bode Well for Bitcoin

Bitcoin 14 Sep 2019
national debt currently sitting at over $22.5 trillion, it’s hard to imagine anything being paid up on ... NIRP policies are racking the world with more debt than ever recently, and while the flowery talk may sound pretty, it’s the common individual who always eats the dirt ... dollar and increasing the national debt....

You know the rest of the story | PennLive Letters

Penn Live 14 Sep 2019
There is always more to the story when people write or talk about how great socialism would be for this country ... The “minimum” tax rate is 40 percent ... The country is the highest taxed nation in the world ... Denmark has the highest personal debt in the world ... We read that the Danes are the happiest people in the world ... ....

Financial and Energy Stocks Could Grow, Says a Top Financial Advisor

Barrons 14 Sep 2019
2019 Firm Rank. 28. Sarat Sethi. Douglas C. Lane & Associates ... Barron’s ... Sethi. Douglas C ... The economy is holding up in a world that’s slowing down ... We’re focusing on companies that aren’t overly reliant on debt. We’re in a world where companies can access credit easily, and if you get any type of blip that affects that access, they could be in trouble ... ....

5 Stable Dividend Stocks to Buy as Fixed Income Vanishes

Yahoo Daily News 14 Sep 2019
For decades — centuries, even — investors around the world have bought fixed-income instruments for relatively risk-free income ... About one-third of tradeable bonds around the world now have negative yields, amounting to $17 trillion in negative-yielding debt ... in the world will....

Why has Russia cut its debt to ZERO?

Russia Beyond 13 Sep 2019
The country’s cash reserves overtook its debt for the first time since 2014 ... As a result of the strict debt discipline, the country’s net public debt has now fallen below zero, reportsRBC Daily (link in Russian). Official statistics show that the Kremlin can now easily pay off all its debts - if it suddenly needed to....

Pemex Bonds Won’t Have Mexico Formal Backing Despite Big Premium

Yahoo Daily News 13 Sep 2019
If the nation were to guarantee Pemex debt, the company would inherit Mexico’s sovereign rating, Moody’s analyst Peter Speer said last week ... Pemex, the world’s most indebted oil company, is on Thursday selling bonds to refinance at least $5 billion of its more than $100 billion debt load ... Pemex to Sell $7.5 Billion of Bonds to Refinance Debt....

Mexico will not formally back Pemex bonds

Petroleum World 13 Sep 2019
If the nation were to guarantee Pemex debt, the company would inherit Mexico's sovereign rating, Moody's analyst Peter Speer said last week ... Pemex, the world's most indebted oil company, is on Thursday selling bonds to refinance at least $5 billion of its more than $100 billion debt load ... Pemex to Sell $7.5 Billion of Bonds to Refinance Debt....

We are fast reaching a stage when interest rate lever will not do any good: Richard Harris

The Times of India 13 Sep 2019
We have a lot of debt, there is quite a lot of headwinds and rather than having an explosion in the bubble, may be the end of this cycle will happen with an implosion, rather than just a general slowdown, says Richard Harris, Investment strategist and analyst, Port Shelter Investment Management ... We are seeing low rates around the world now....

Mexico's Pemex offers to prepay chunk of $14.7 billion in bonds

Yahoo Daily News 13 Sep 2019
However, years of declining oil output, mismanagement and corruption have taken their toll on the firm, which is now the world's most heavily indebted oil company, with $104 billion in financial debt ... of its debt to junk status, after Fitch Ratings took that step in June....