"The G77 developing countries spend a total of $8tn a year servicing their debts, equating to an average of 35% of government spending. Six billion people are living in countries where spending on debt service is higher than the annual health budget."
"Halving borrowing costs for the 33 countries paying the highest interest rates, plus reducing repayments to 10% of government revenue for others, could free up as much as $3tn a year to be spent on development."
"A more realistic plan, which excludes wealthier developing countries such as China, could still free up $917bn a year, allowing countries to more than double their social spending."
A report by Development Finance International indicates that reducing debt servicing costs for the poorest countries could release $900bn annually for development. G77 countries spend $8tn yearly on debt servicing, averaging 35% of government budgets. The UN secretary general has called for global debt relief to support sustainable development goals. The report suggests halving borrowing costs for high-interest countries and limiting repayments to 10% of government revenue could yield $3tn for development, with a more realistic plan freeing $917bn annually, significantly increasing social spending.
Read at www.theguardian.com
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