Fears of a fresh debt crisis in developing countries that would send shockwaves through the global financial system have been highlighted by a United Nations report stressing the vulnerability of poor states to falling commodity prices and higher interest rates. According to the IMF, 36 countries had received financial assistance worth $76bn under the Heavily Indebted Poor Country initiative, but Unctad said rushed attempts to integrate poorer countries into international financial markets after the 2008 global recession had left them vulnerable. “Easy access to cheap credit in boom times has led to growing debt levels across the developing world. “Only a couple of years ago, the amount of debt that low-income developing countries could have sold to eager investors seemed almost limitless. Facebook Twitter Pinterest Plunging energy prices have taken a heavy toll on developing countries.

Source: The Guardian September 21, 2016 17:00 UTC