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Jubilee Statements

Monitoring the impacts of government and corporate behaviour in communities overseas.

Pittsburgh, 24 September – Third World Network

Release Date: 23-Sep-2009

The World Bank has nearly doubled lending in 2009 and the Asian Development Bank plans to increase lending by more than $10 billion in 2009-10. The G20 also announced an additional $250 billion in support for trade finance over the next two years, most of which will flow through export credit guarantee agencies (see our Export Credit Watch campaign) which have played an important role in sovereign debt creation in the past.

What does this mean for middle and low income countries facing an increasingly unsustainable debt burden?

In March, the IMF reported that the debt-to-GDP ratios of 28 low-income countries exceeded 60 per cent, twice the threshold the IMF considers sustainable for countries with so-called weak policies. The United Nations Conference on Trade and Development (UNCTAD) went further, citing concerns in 49 least developed countries in a February report Yuefen Li, the head of the debt and development finance branch.