IMF Issues Debt and Financial Crisis Warnings

Author: 
Jubilee USA Network
Locality: 

Washington DC - As the Spring World Bank and IMF meetings begin, the IMF issued concerns over unsustainable debt and a possible financial crisis in two reports. African and Latin American debt experts are releasing new analysis of growing debt at the meetings.

"Debt is threatening development in Latin America, it's growing fast and in some cases is beyond sustainable levels," stated Patricia Miranda, Coordinator of Finance for Development at Latindadd.

According to a new debt report from Latindadd, debt in some countries is over 70% of GDP. The report analyzes debt concerns in Argentina, Brazil, Ecuador, Colombia, Costa Rica, Honduras, El Salvador, Mexico, Nicaragua and Bolivia.

Across the Atlantic Ocean, debt levels are rising in Africa. Analysis from African debt watchdog, AFRODAD, suggests central Africa faces a debt crisis because of falling values in oil exports. As revenues fall, African countries borrow to address deficits, according to AFRODAD.

Last year the IMF released a report on growing Africa debt concerns. This week, the IMF released its biannual World Economic Outlook and Global Financial Stability Reports warning of debt risks to the global economy.

"Debt concerns are dominating this year's IMF meetings," noted UN debt expert Eric LeCompte. LeCompte directs the religious development group, Jubilee USA. "Unsustainable corporate and country debts are creating risks for another global financial crisis."

Jubilee USA, AFRODAD, Latindadd, the IMF and Brot für die Welt are presenting analysis of debt issues during the Spring IMF meetings. At a Friday Panel, Fanwell Bokosi from AFRODAD, the IMF's Mark Flanagan, Latindadd's Patricia Miranda and Eric LeCompte from Jubilee USA discuss concerns over debt and financial crisis.

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