IMF warns poor countries debts to soar

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THE level of debt for low income developing countries is set to soar as they grapple with the effects of the Covid-19 pandemic, the International Monetary Fund (IMF) has warned.
In its World Economic Outlook Update for January 2021, the IMF noted that these countries were already struggling with unsustainable debts before the pandemic.
“Low-income developing countries have far less policy space, and many entered this crisis with high debt that is set to rise even further during the pandemic.

“Support from the international community through grants, concessional loans, and debt relief will be essential to ensure that these countries are not overwhelmed by crisis costs and rising poverty,” the IMF said.