Poor countries’ debt up to record US$860bil

Pressing issue: A man passes by a poster of the annual World Bank Group and IMF meetings in Washington. The bank says half of the world’s poorest countries are in external debt distress or at high risk of it. — AFP

WASHINGTON: The World Bank warned of a significant 12% rise in the debt burden of the world’s low-income countries to a record US$860bil (RM3.59 trillion) in 2020 as a result of the Covid-19 pandemic, and called for urgent efforts to reduce debt levels.

World Bank president David Malpass told reporters the bank’s International Debt Statistics 2022 report showed a dramatic increase in the debt vulnerabilities facing low and middle-income countries; he also urged for comprehensive efforts to help countries reach more sustainable debt levels.