UNCTAD is hosting its 13th Debt Management Conference in Geneva . The conference comes as a result of a global crisis that has forced many developing countries to borrow more money to serve the needs of their populations .
Geneva (Switzerland), December 7: At the start of the organisation's 13th Debt Management Conference, UNCTAD Secretary-General Rebeca Grynspan said that improved multilateral solutions are vital to tackle the debt crisis impacting developing countries.The conference, which takes place in Geneva on December 5 to 7, comes as a result of a global crisis that has forced many developing countries to borrow more money to serve the needs of their populations.This increase, including China, is expected to be around USD 2 trillion, but it has not been due to one country's unhealthy behavior.Grynspan said that the debt crisis has imposed an immense burden on public finances in developing countries, which are being forced to invest in education, health care, their economies, and adapting to climate change in a world marred by a pandemic, geopolitical instability and climate disaster.
Sri Lankan President Ranil Wickremesinghe said in a speech issued by the country's permanent representative in Geneva, Ambassador Gothami Silva, that this must be done in a way that promotes the debtor countries' ability to grow and meet their current and future debt obligations while also fulfilling its SDG commitments.According to an UNCTAD survey, governments would pay an additional USD 1.1 trillion to the global debt stock in 2023 if the median increase in rated sovereign debts since 2019 was fully reflected in interest payments, a figure that is nearly four times the projected annual investment of USD 250 billion in climate adaptation and mitigation in developing countries.In a statement issued by Barbados Prime Minister Mia Amor Mottley at UNCTADs debt management conference, Coye said that the world needed to find a solution to the debt problem that allows countries to continue responding to the climate crisis without losing their jobs.In a statement issued on behalf of her, Staughn also referred to the impact of the US dollar's currency structure on public budgets. By the end of this year, at least 88 countries had suffered a depreciation against the US dollar.The depreciation in 31 of these countries was more than ten percent.According to Grynspan, in the majority of African countries, such an increase increases debt repayment requirements by the equivalent of continent-wide public health expenditures.And, she said, systemic problems necessitate systemic solutions.