UN calls for debt relief in 14 countries in Latin America and the Caribbean

Recommended by the United Nations Development Program (UNDP) In low- and middle-income countries, use sovereign debt relief measures exacerbated by the Govt-19 epidemic, 14 of them in Latin America and the Caribbean.

In its report “Impact of Sovereign Credit on Emerging Economies”, UNDP analyzed the impact of debt on 120 low- and middle-income economies.

In this way, it classified 72 economies as “vulnerable”. According to the report, Debt in these countries will be high for many years This will prevent governments from making decisive investments to benefit the people and combat climate change.

Among countries vulnerable to debt in Latin America and the Caribbean, the organization specializes in: El Salvador, Honduras, Costa Rica, Venezuela, Ecuador, Bolivia, Belize, Bolivia, Nicaragua, Argentina, Grenada, Jamaica, Haiti and Saint Vincent and Saint Vincent.

“This year, about $ 1.1 trillion is owed in debt service. Only 2.5% of that amount will be enough to vaccinate 2 billion people under the Kovacs initiative. [Mecanismo de Acceso Mundial a las Vacunas contra la Covid-19]UNDP executive Achim Steiner said.

The report notes that the Debt Service Suspension Initiative (DSSI), which allows the most vulnerable countries to interfere with G20-approved debt, is “necessary but not sufficient”.

The International Monetary Fund (IMF) seeks to increase its reserve and credit capacity to $ 650,000 million. Of this amount, 4 224 billion will go to low- and middle-income countries.

(With information from Russia Today)