Developing economies could secure hundreds of billions of dollars in savings if the world commits to restructuring their existing debt and expanding access to future affordable finance, according to a new policy brief published today by the United Nations Development Programme (UNDP).
The brief - 'Building Blocks Out of The Crisis' - identifies 52 low and middle-income developing economies either in debt distress or at high risk of debt distress, accounting for more than 40 percent of the world's poorest people. It shows how a 30 percent haircut on their public external debt stock in 2021 could help save up to $148 billion in debt service payments over eight years.
Ahead of the G20 Finance Ministers and Central Bank Governors Meeting in Bangalore this week, world leaders have been urged to take action to help cushion developing countries from the impacts of today's overlapping crises while also ensuring that financial resources are aligned to support just, inclusive and equitable transitions for all countries.
