Debt payments for the 50 countries most susceptible to the climate crisis have doubled during the pandemic, reaching their highest levels in over 30 years, according to activists. Debt Justice highlighted that these countries now allocate 15.5% of government revenue to external creditors, a substantial increase from pre-Covid levels. The charity urges for debt relief to enable these nations to combat climate change effectively.
Data from the World Bank and IMF underscore the critical need for comprehensive debt relief to empower poorer nations in addressing the climate emergency. Debt Justice’s executive director, Heidi Chow, emphasized the detrimental impact of escalating debt levels on vulnerable countries and called for urgent action.
As the conference on climate finance kicks off in Bonn, the spotlight is on countries grappling with unsustainable debt burdens. Zambia’s recent debt restructuring agreement sheds light on the pressing need for fairer repayment terms, especially in the face of climate-related disasters.
Debt Justice stresses the importance of debt cancellation and emphasizes the responsibility of affluent nations to provide adequate climate finance. It’s imperative for global stakeholders to collaborate on sustainable solutions to alleviate the debt crisis and combat climate change effectively.
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