Poorer nations could be facing economic collapse unless the world’s richest economies agree to step up debt relief efforts, International Monetary Fund (IMF) chief Kristalina Georgieva warned on Thursday.
Some 60% of low income countries are already in or at high risk of debt distress, compared to less than half that in 2015, Georgieva wrote in a blog co-authored with Ceyla Pazarbasioglu, director at the IMF Strategy, Policy and Review Department.
“For many of these countries, the challenges are mounting,”
Georgieva and Pazarbasioglu warned.
“We may see economic collapse in some countries unless G20 creditors agree to accelerate debt restructurings and suspend debt service while the restructurings are being negotiated.”
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