As a result, such countries face reduced economic growth and are forced to explore the option of debt restructuring, otherwise, they face the risk of financial instability and a full-on economic meltdown.
Debt has become a major problem for developing countries over the past few years. These countries continue to face macroeconomic challenges that hinder them from servicing their debt, and by extension, growing their economies.
As central bankers, finance ministers, and political leaders gather next week for the World Bank Group and International Monetary Fund (IMF) spring meetings, the record number of developing countries in danger of a debt crisis will be high on the agenda.
