International Desk: Achim Steiner, the head of the United Nations Development Program (UNDP), has warned that more than half a hundred poor developing countries in the world are at risk of becoming insolvent. These countries are on the verge of virtual bankruptcy if rich countries do not come forward with urgent aid. News from The Guardian.
Inflation, energy crisis and rising interest rates are creating a situation where several countries are at risk of default, the head of the United Nations Global Development Organization said at the COP 27 conference on climate change in Egypt. There is a danger of having a disastrous effect on the people of these countries.
He said, currently there are 54 countries at risk of default on our list. If interest rates go up, more money is spent on borrowing, electricity and food prices rise, inevitably some countries will not be able to repay the debt.
The head of the UN’s global development agency said it would create a catastrophic situation. Look at Sri Lanka, a country mired in internal discontent over an economic crisis. All kinds of social, economic and political factors were active behind this state of the country. Any such default would further complicate the climate-crisis solution. It certainly won’t help climate action.
He warned that these poor countries will not be able to deal with the climate crisis unless debt relief measures are taken.
