"More than 30 leading economists, former finance ministers and central bankers have called for immediate debt relief for low- and middle-income countries, warning that loan repayments are preventing governments from funding basic services. In a letter released on Sunday, in advance of next month's World Bank and IMF annual meetings, the group says countries are defaulting on development even when they keep up with debt payments."
"The economists say African governments now spend an average of 17 percent of state revenue on debt servicing. Thirty-two African nations spend more servicing external debt than funding healthcare, while 25 allocate more to debt than to education. The letter says capping the average ratio of state revenue used on debt servicing at 10 percent could provide clean water to about 10 million people across 21 countries, and prevent approximately 23,000 deaths of children below five years of age each year."
More than 30 leading economists, former finance ministers and central bankers called for immediate debt relief for low- and middle-income countries, warning that loan repayments prevent governments from funding basic services. African governments now spend an average of 17 percent of state revenue on debt servicing. Thirty-two African nations spend more on servicing external debt than on healthcare, while 25 allocate more to debt than to education. Capping debt servicing at 10 percent of state revenue could provide clean water to about 10 million people and prevent roughly 23,000 under-five deaths annually. Healthcare systems face severe strain, with widespread wage insufficiency, medicine shortages and shrinking international aid.
Read at www.aljazeera.com
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