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

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.

Related UN Sustainable Development Goals:
GOAL 17: Partnerships to achieve the Goal
Problem Type:
E: Emanations of other problems
Date of last update
04.10.2020 – 22:48 CEST