Despite this, vulnerabilities remain, with high debt servicing costs a growing challenge for low-income countries. Financing pressures due to relatively high interest payments and the pace at which low-income countries need to repay debt are straining budgets. Low-income countries also have significant debt repayments falling due in the next two years. Low-income countries can already seek debt relief through the Group of Twenty’s Common Framework, including to reduce their immediate debt servicing burden. Overall, the funding squeeze facing low-income countries must be closely monitored.

Source: Nigerian Tribune January 28, 2024 07:15 UTC