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UNDP administrator, Achim Steiner, wants emergency response for 54 countries in debt crises

Published

2 years ago

October 12, 2022

The United Nations Development Programme (UNDP) has warned that 54 countries across the world need immediate debt relief.

A senior official of the UNDP, Achim Steiner, called for measures, including writing off debt, offering wider relief to greater numbers of countries and even adding special clauses to bond contracts to provide breathing space during crises.

The number of countries in the crises account for more than half of the world’s poorest people, and are already in some sort of debt crisis, to avoid even more extreme poverty while giving them a chance of dealing with climate change.

The debt profile of many developing countries has reached disturbing states. So much so that, the president of one of Africa’s leading powers, Muhammadu Buhari of Nigeria at the last United Nations General Assembly called for debt cancellation for developing countries.

In Buhari’s Nigeria for instance, the public debt profile has risen significantly. The World Bank Fiscal 2022 audited financial statements for International Development Association (IDA), revealed the country now owes a debt stock of $13bn as of June 30, 2022.

Other countries like Zimbabwe, Zambia, Chad, Ghana, and Tunisia to mention a few are also in the thick of economic and financial crises. Earlier in the week, a senior official of the International Monetary Fund, IMF, Kristalina Georgieva, argued debt restructuring arrangements for Zambia and Chad completed shortly.

External debts are not as contentious in many African states as the discipline to expend the funds appropriately on development-centered projects, which has always been a course for concern amidst the nature of corruption and wastefulness that characterizes the political and public system in Africa.

Another case study of Nigeria, whose president recently presented its 2023 proposed budget to its national legislature revealed that the office of the President and his Vice proposed to expend a whopping N11.92bn on local and foreign trips and the presidential air fleet. For a country in a debt mess and dwindling economy, more prudent measures for public expenditure are necessary.

Related Topics:DEBT CRISIS Featured UNDP

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”