▷ “nd.DerTag”: Creditors have it in their hands – comment on the according to the debt report …

26.01.2022 – 18:11

nd.DerTag / nd.DieWoche

Berlin (ots)

There are still only three countries: Suriname, Belize and Zambia have had to declare their insolvency since the beginning of the corona pandemic.

Three states do not create a bankruptcy wave. At first glance, this suggests successful debt management by the creditor states. But the debt report 2022 proves: far from it. 39 and thus three times as many countries as before the corona pandemic are acutely affected by over-indebtedness.

The wave of bankruptcies has only been postponed, not stopped. The debt moratorium declared by the G20 for the world’s poorest countries in spring 2020 expired at the end of 2021. Now the debts have to be serviced again as before Corona, and from 2023 the deferred debts from the moratorium have to be repaid with interest. It is clear that this will overwhelm many countries.

In the Global South, 83 countries have already had to cut government spending to maintain debt service; Spending on education, healthcare and anti-poverty measures are being forced down where they urgently need to be increased – even before the pandemic.

Everything is set for a debt crisis in the Global South like in the 80’s and 90’s. It is not inevitable. It is in the hands of the creditor countries to create space for development for over-indebted countries of the Global South through debt relief. The federal government has a state insolvency law in the coalition agreement. And Germany will chair the G7 in 2022. Implementing this insolvency law internationally would be a key step towards dealing with the debt crisis in a regulated manner. Anything else means a social catastrophe for hundreds of millions of people.

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