Debt, often arising from irresponsible lending, has been part of the Global South’s experience for decades. Could the fallout from the most recent
bout of reckless lending in the North see these countries tipped into an even deeper debt crisis?
With traditional sources of finance drying up, export markets collapsing and a range of other economic impacts, the threat of a renewed debt crisis is very real. At this time there is an urgent need to increase financial flows to the poorest countries. However, there is a serious concern that this will be done through new lending, often on more expensive terms, therefore increasing unpayable debts in the longer term.
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