OPINION / Albania would be much different if Sabile Risha had studied to be a tractor driver...

 Kliko këtu për të tjera
Voxpress:

The war with Iran is causing a new crisis

2026-06-06 17:36:08Kosova&Bota SHKRUAR NGA REDAKSIA VOX

The war in the Middle East and its consequences on international markets are turning into a new debt crisis for developing countries, warns the former chairman of the African Union Commission, Moussa Faki Mahamat.

In an analysis published on June 4, Mahamat argues that rising energy and food prices, driven by the conflict with Iran, are particularly hitting poor and developing countries, which already face high levels of debt and rising financing costs.

According to him, the roots of the current crisis lie in the past decade, when low interest rates pushed many low- and middle-income countries to borrow in dollars. After the COVID-19 pandemic, rising interest rates and a strengthening US dollar made servicing this debt much more costly.

At the end of 2023, the external debt of developing countries reached $11.4 trillion, while interest payments increased by 26% compared to two years earlier. According to the data cited in the analysis, 54 countries are spending at least 10% of their budgets on debt interest payments alone.

The situation has been further exacerbated by rising energy prices following the conflict with Iran, especially for countries dependent on oil and gas imports. At the same time, many countries are facing large refinancing needs and tighter conditions in international markets.

According to the International Monetary Fund, at the end of March, nine countries were already in debt crisis, while 23 others were considered high risk and 28 were considered moderate risk.

Mahamat is calling on international financial institutions to intervene with urgent measures. He proposes that the IMF expand emergency financing programs, while multilateral development banks increase lending to the hardest-hit economies.

It also calls for accelerating debt restructuring processes and supports ideas such as debt swaps for investments in climate, health or education, as well as mechanisms that allow countries to temporarily suspend payments in the event of major crises.

However, he says these measures may not be enough given the scale of the current crisis. He recalls that during the COVID-19 pandemic, international cooperation allowed for the temporary suspension of debt payments for many countries, and argues that a similar global response is needed today.

"Once again, a global crisis is disproportionately burdening countries that did not cause it. The international community has an obligation to respond," Mahamat concludes.


Në përputhje me standarded JTI

Video

SHIKO KANALIN NE YOUTUBE
×