Developing countries are in urgent need of debt relief. As of end of the 2024, 35 low-income countries were either in debt distress or at high risk of it. But even countries that are not in debt distress face mounting pressures, with rising debt service costs exacerbated due to the effects of the pandemic, the invasion of Ukraine, and the tightening of monetary policy that followed. The UN Trade and Development reports that many developing nations spend significantly more on debt repayment than on essential services like healthcare or education. The main reason is that they borrow at interest rates 2–4 times higher than those in developed countries, like the United States, and 6–12 times higher than in Germany. Such high…
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