Poor countries’ debt rose 12% to record $860 bln in 2020: World Bank

According to a report released Monday by the World Bank, the debt burden of low-income nations increased by 12% to a record $860 billion in 2020 as governments responded to the COVID-19 crisis with enormous fiscal, monetary, and financial stimulus measures.

World Bank President David Malpass, the report indicated a huge increase in the debt vulnerabilities facing low- and middle-income nations, who called for immediate action to help countries reach more sustainable debt levels.

According to the analysis, the external debt stocks of low- and middle-income nations combined will increase by 5.3 percent to $8.7 trillion in 2020, hurting countries around the globe.

The data also shows the debt service delayed in 2020 by each bilateral creditor and the predicted month-by-month debt-service payments payable to them through 2021 for DSSI-eligible countries.