reported Tuesday, with developing countries owing roughly one-third of that — crimping their ability to pay for basic government services like health care, education and climate action.
“Developing countries must not be forced to choose between servicing their debt or serving their people,” the report said. “The international financial architecture must change to ensure a prosperous future for both people and the planet.” However, global shocks have jolted economies in Africa, where median public debt as a share of economic output has risen to 62% last year.With the cost of borrowing increasing in many parts of the world last year, interest on public debt jumped to $847 billion last year – up 26% from two years earlier, the U.N. office said.
A $1.2 trillion government funding bill passed by Congress in March allows the U.S. to lend up to $21 billion to an International Monetary Fund trust that provides zero-interest loans to support low-income countries.