Washington-. The United Nations Development Program (UNDP) warned today that a deep financial debt crisis is exacerbating poverty in 54 of the world’s nations with the most vulnerable economies.
The UN panel’s report stressed that these countries are home to half the world’s population with the greatest deficits in access to essential resources and goods.
He also pointed out that if the debt is not restructured, it would have a negative impact on climate change mitigation budgets available within borders.
In that sense, UNDP pointed out that this group of nations accounts for just over three percent of the global economy and that 28 of the 50 national territories most vulnerable to climate action belong to this bloc.
The company also pointed out that the debt crisis is being catalyzed by internal policies in developed countries, which have skyrocketed interest rates and prompted investors to flee to countries with weaker economies.
The UNDP report also stressed that debt restructuring cannot wait until interest rates fall or a global recession hits.
The document also highlighted volatility in market conditions, reflected in factors such as synchronized fiscal and monetary contraction and low growth.
The agency pointed out that 19 developing countries are currently paying more than 10 percentage points on US Treasury bonds to obtain credit in the capital markets.
UNDP General Administrator Achim Steiner emphasized that in the area of climate protection the mistake of not relieving the poorest countries too little and too late should not be repeated.