Wealthy nation creditor club sees tide shifting as debt defaults peter out

LONDON, June 26 (Reuters) – The debt crisis risk that has overshadowed the global economy for four years is beginning to recede, the Paris Club of rich creditor nations said in its 2023 annual report on Wednesday.

A string of defaults, from Zambia to Sri Lanka, began in 2020 when the COVID-19 pandemic triggered a series of economic shocks that continued into last year with the fallout from Russia’s war in Ukraine and rising global interest rates compounding pressure on fragile finances in many poor nations.

Source: REUTER