Wheat Ukraine No 1 supplier in the world; Russian military ships are in Odessa and other ports so grain cannot be distributed to mostly poor countries in North Africa. This will cause Famine which in turn results in civil war. We need to watch this debt? Source: THE GZERO NEWSLETTER SIGNAL

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A developing world debt bomb

Poorer countries face a perfect storm of debt problems, according to a new report by the International Monetary Fund, and wealthier countries must take notice. “Most emerging market and developing economies are ill-prepared to face the coming debt shock,” said David Malpass, president of the World Bank Group, on Monday. The pandemic forced many developing countries to borrow heavily to manage the emergency. Sharp increases in food and fuel prices triggered by Russia’s war in Ukraine make matters worse. China is lending less as it manages private-sector debt problems, a surge in COVID cases, and fears that existing debts to developing countries won’t be repaid. Rising interest rates in the US and Europe will make borrowing more expensive for poorer countries. “About 60 percent of low-income countries are now in, or at risk of, distress,” the report says. But debt isn’t a problem only for those who owe. Lender countries know they need to work with heavily indebted governments not only to ensure debts can be repaid as fully and as quickly as possible, but to help them avoid the human, economic, and political emergencies that create crises that cross borders. That’s why the IMF has called on lending nations to take “a cooperative approach to ease the debt burdens of the most vulnerable countries, [and] foster greater debt sustainability.”

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