According to the International Monetary Fund, 15% of low-income countries are already experiencing debt distress. According to Nairametrics, the IMF stated in a new report titled “Confronting Fragmentation Where It Matters Most: Trade, Debt, and Climate Action” that a further 45% of the population is further at high risk of debt distress.
According to the report, many nations struggle with debt, and fragmentation will make it more difficult to resolve sovereign debt crises, particularly if important official creditors are split along geopolitical lines.
The IMF noted that about 25% of emerging markets are at high risk and are dealing with borrowing spreads that resemble defaults. The financial organization claimed that there were signs of development on the Group of Twenty’s Common Framework for debt treatment.
Punch.