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Why developing countries are facing a renewed debt crisis

Why developing countries are facing a renewed debt crisis

The International Monetary Fund (IMF) and the World Bank (WB) have again branded almost half of low-income countries as heavily indebted - despite the extensive debt relief received by most low-income countries between 2000 and 2012 under the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI). High foreign debt hampers the development of these countries because the money has to be used for interest and principal payments and is not, therefore, available for key investments, such as infrastructure or social spending. […]