Deteriorating terms of international financial loans to vulnerable countries
Other Names: Deterioration in the cost of external national finance
Increases in interest rates on long-term debts to countries
Inappropriate loans available to countries
Unreliable forms of concessional and non-concessional lending to countries
Decreasing availability of concessional financial resources
Nature: This results in dramatic shifts in the debt structure from concessional loans to non-concessional loans with harder lending terms. Developing countries, in particular, are exposed to deteriorating terms of borrowing, including sudden increases in interest rates paid on long-term debts, particularly commercial loans. In addition grace and repayment periods may be reduced.
Claim: Every time the USA raises its interest rates thousands die in developing countries because money that would be used for health care and food is sent outside these countries to pay the debt.
Problem Type: E: Emanations of other problems
Date of last update 01.01.2000 – 00:00 CET