Poor countries have seen their debt repayments double since 2010 amid declining commodity prices, a strong US dollar and rising US interest rates, according to the Jubilee Debt Campaign (JDC). Many poor nations increased borrowing at a time of low interest rates and are now faced with having to cut public spending. “In addition, when crises arise, the IMF should stop bailing out reckless lenders, and require debts to be reduced instead, so that the costs of crises are shared between borrower and lender. The JDC said that in some countries, such as Nigeria, it was not possible for governments to borrow enough money from private lenders because they had no access to international capital markets.
Poor countries have seen their debt repayments double since 2010 amid declining commodity prices, a strong US dollar and rising US interest rates, according to the Jubilee Debt Campaign (JDC). Many poor nations increased borrowing at a time of low interest rates and are now faced with having to cut public spending. The JDC said that in some countries, such as Nigeria, it was not possible for governments to borrow enough money from private lenders because they had no access to international capital markets.