Global Debt Crisis Looms as Developing Nations Struggle Under Crushing Debt Burden

Developing countries face a catastrophic debt crisis amid multiple global crises like COVID-19, Ukraine war, and climate change. Over 50 countries face repayment difficulties.

Debt relief efforts are slow due to the rise of China as the largest bilateral creditor. Its opaque loan terms and unwillingness to take losses stall progress.

The IMF and World Bank's refusal to take losses on their loans also hinders debt restructuring. China wants these Western-dominated institutions to share losses.

The rise of private bondholders adds complexity as borrowers have to strike deals with them too. Zambia reached an agreement with official creditors but not bondholders.

The G20 has created a framework bringing Paris Club and other creditors together. But reaching agreements still takes many months compared to just 2-3 months previously.