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When Dominic Raab, the foreign secretary, was in Sudan in January he offered £40m in aid to help its poorest people, who are facing unprecedented food scarcity in a debt-laden country where austerity is deepening.Sudan, ruled by an unelected military-led transitional government after longtime ruler Omar al-Bashir wa...

We can rise to the challenge of a green, resilient and inclusive recovery from Covid, but only if critical changes are madeThe numbers are well-publicised but bear repeating. Around 120 million more people were pushed into extreme poverty in 2020, a number that could rise to 150 million in 2021. An estimated 250 million jobs have been lost around the world, and the number...

International development committee tells government that pandemic and foreign aid cuts fuelling poverty and food insecurityBillions of dollars of debt owed by poor countries must be permanently cancelled in order to stave off a “looming financial tsunami” caused by Covid-19 and the ensuing global recession, a cross-party committee of MPs has warned.Debt relief will not be enough to help the world’s most vulnerable economies...

If global growth resumes in 2021 some developing countries may skate through the crisis. Others won’t be so lucky Last March, when Covid-19 infected the world economy, many observers feared that emerging markets and developing countries would suffer the most, financially and otherwise. Economically, they relied on commodity exports, remittances, and tourism, all of which fell through the floor with the pandemic. There was...

Aid agencies say debts should be restructured or cancelled due to the pandemic and warn other countries could followZambia has become the first African country to default on its debts since the pandemic, leading to fears that a “debt tsunami” could engulf the continent’s most heavily indebted nations as the financial impact of coronavirus hits.A hastily-arranged G20 finance minister meeting in Saudi Arabia failed...

At this weekend’s meeting in Riyadh, leaders will urge action to free up resources to help stricken developing countries combat Covid-19From his house in Nairobi, banker turned financial vlogger James Mumo contemplated the state of Kenya’s post-pandemic economy. “It’s hopeless for a normal businessperson just trying to make a living for their family,” he says.The economic crisis caused by the pandemic and ensuing lockdowns...

Zambia could become the first country to default on its debts amid the fallout from Covid-19, but it won’t be the lastZambia is running out of money to pay its debts. It has asked bondholders for breathing space so that it can put a restructuring plan in place. The copper-rich African state is at risk of being the first country to default on its...

Jubilee Debt Campaign reveals a sharp rise in the number of countries in distress since 2018Developing nation debt has more than doubled in the past decade and has left more than 50 countries facing a repayment crisis, according to a campaign group.New data from the Jubilee Debt Campaign showed that even without taking full account of the impact of the coronavirus pandemic there had...

Vulture funds want to change Argentina’s debt structure. We need to stop them from setting a dangerous precedent In the wake of Covid-19, there is an urgent need for sovereign debt restructuring, including debt relief. In the circumstances caused by the pandemic, many countries’ repayment obligations could have devastating social consequences if they are not adjusted. Financial markets face risks of sovereign default.While some...

Australia urged to use its influence to push for the permanent cancellation of all debt due from vulnerable countries in 2020Low-income countries need their debts for 2020 forgiven, alongside billions in emergency grants to survive the Covid-19 crisis, civil society groups around the world have said, arguing the viral pandemic will hit hardest the poorest people in the poorest countries.More than 100 civil society...

With the IMF and World Bank spring conference approaching, research underlines need to bail out world’s poorest countriesFor more than two years the World Bank and the International Monetary Fund have warned that sub-Saharan Africa stands on the verge of a debt crisis. Ever since commodity prices began to fall in 2015, the public finances of nations stretching from Nigeria to Kenya and Chad...

IMF and World Bank sign off $5bn in assistance with help of bridge financing from Norway, Italy, the UK and the EUSomalia’s debt will be slashed to a fraction of its current levels after almost $5bn (£4.1bn) of assistance was approved by the International Monetary Fund and World Bank.A joint statement from the global financial institutions praised Somalia’s efforts at economic reform, allowing it...

IMF and World Bank lend their support in bid to help poorest countries strengthen their health systemsCoronavirus – latest updatesSee all our coronavirus coverageGovernment ministers across Africa have called for the suspension of debt interest payments as the Covid-19 crisis deepens.The numbers of cases being reported in Africa are still behind Europe and the US but rises are being confirmed in South Africa, Kenya,...

Covid-19 crisis is raising borrowing costs for poorer nations just as commodity exports, tourism and remittances sent home fallRapid action is needed to head off the risk of a new debt crisis in the world’s poorest countries amid evidence that the Covid-19 pandemic is raising borrowing costs and hitting commodity exports, according to a leading campaign group.A Jubilee Debt Campaign report said some of...

Congo-Brazzaville and Chad among hardest hit as campaigners warn spiralling repayments could trigger disasterPoorer countries are cutting public spending in response to a “growing debt crisis”, campaigners have warned.Debt in some countries has trebled, according to new figures, that calculate debt reimbursements, and their impact on government expenditure, in 60 countries. Continue reading...

Jubilee Debt Campaign says the Fund broke its own rules by not ensuring sustainable debt burdenDebt campaigners have accused the International Monetary Fund of encouraging reckless lending by extending $93bn (£75bn) of loans to 18 financially troubled countries without a debt restructuring programme first.In advance of the IMF’s annual meeting in Washington next week, the Jubilee Debt Campaign (JDC) said the the Fund was...