High debt burdens continue to strangle the most climate-vulnerable countries, hindering their ability to invest in climate action. These nations are projected to face their highest debt payments in over 30 years.
Since the pandemic, external debt payments for over 50 vulnerable countries have quadrupled.
A Debt Justice report, using World Bank and IMF data, shows that 2024 will see the highest external debt payments since at least 1990.
“Crushing debt levels are crippling these countries’ ability to tackle the climate crisis,” said Heidi Chow, Executive Director of Debt Justice. “Rapid, effective debt relief is needed to cancel debts to a sustainable level.”
Canceling debt to sustainable levels is seen as an immediate way for lenders to provide relief. As climate impacts further limit development, external debt obligations continue to obstruct investments in climate solutions.
