WASHINGTON: Nearly half of the countries eligible for concessional financing from the International Monetary Fund (IMF) are either in debt distress or at high risk of it, while their interest payments have quadrupled since 2013, Transparency International (TI) says.
In a report released ahead of the IMF and World Bank Annual Meetings in Bangkok from Oct 12 to 18, the anti-corruption organisation warns that secrecy and corruption in sovereign borrowing can also leave future generations paying for loans that benefit the powerful.
The report urges governments and international lenders to make public borrowing more transparent, strengthen safeguards against corruption and give borrowing countries a greater say in decisions that shape their debt obligations.
The report highlights the growing pressure on public finances in low- and middle-income countries. According to the report, at least 8 per cent of government revenue across these economies goes toward servicing debt. In Africa, 57pc of the population lives in countries that spend more on interest payments than on health, education and climate action.
