Debt ‘Crisis’ In Poor Countries Driving Public Spending Cuts

Rising debt burdens are forcing some of the world’s poorest countries to cut already meagre levels of public sending still further, campaigners have warned. All but one of a group of 15 low-income countries where debt servicing costs consume 18 per cent or more of government revenues have cut non-debt related public spending since 2015, according to the Jubilee Debt Campaign, the Financial Times reported. Real public spending per person in the Republic of Congo more than halved between 2015 and 2018, the debt charity said, while it fell 35 per cent in Chad and 21 per cent in Mozambique, a country already in default after it borrowed more than $2bn, much of it concealed from the IMF, ostensibly to finance a tuna fishing fleet and maritime security projects, only for much of the money to be diverted to kickbacks for bankers and government officials, according to US prosecutors. Read more