The United Nations Development Programme Tuesday released a report which says an estimated 54 countries that account for more than half of the poorest nations in the world, desperately need immediate debt relief.
“A serious debt crisis is unfolding,” read the UNDP report, adding, “the likelihood of a worsening outlook is high.”
The UNDP report also calls for a recalibration of the G20-led Common Framework, which is the plan designed to help restructure the debt of nations that have been pushed into financial trouble by global health crises.
UNDP officials further propose expanding eligibility to the Common Framework to include all heavily indebted nations and for any debt payments to be automatically suspended during the process.
Experts say to date, Chad, Ethiopia, and Zambia are the only nations that have used the G20-led Common Framework.
The warnings by the UNDP come amid rising worries of a global recession and debt in countries ranging from Sri Lanka and Pakistan to Chad, Ethiopia, and Zambia.
UNDP’s administrator Achim Steinher says several measures must be taken to address the challenges faced by the 54 countries mentioned in the report.
Steinher added, writing off debt and offering wider relief to a greater number of countries would help address the challenges faced by poor nations.
