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UN: 54 poor nations urgently need debt relief

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UN: 54 poor nations urgently need debt relief

Cascading global crises have left 54 countries — home to more than half of the world’s poorest people — in dire need of debt relief, the UN said Tuesday.

In a new report, the United Nations Development Programme warned that dozens of developing nations were facing a rapidly deepening debt crisis and that “the risks of inaction are dire”.

UNDP said without immediate relief, at least 54 countries would see rising poverty levels, and “desperately needed investments in climate adaptation and mitigation will not happen”.

That was worrisome since the affected countries were “among the most climate-vulnerable in the world”.

The agency’s report, published ahead of meetings of the International Monetary Fund, the World Bank, and also of G20 finance ministers in Washington, highlighted the need for swift action.

But despite repeated warnings, “little has happened so far, and the risks have been growing,” UNDP chief Achim Steiner told reporters in Geneva.

“That crisis is intensifying and threatening to spill over into an entrenched development crisis across dozens of countries across the world.”

The poor, indebted countries are facing converging economic pressures and many find it impossible to pay back their debt or access new financing.

– ‘Volatility’ –
“Market conditions are shifting rapidly as a synchronised fiscal and monetary contraction and low growth are fuelling volatility around the globe,” UNDP said.

The UN agency said debt troubles had been brewing in many of the affected countries long before the Covid-19 pandemic hit.

“The rapid build-up in debt over the past decade has been consistently underestimated,” it said.

The freeze on debt repayment during the Covid crisis to lighten their burden has expired and negotiations under the G20 Common Framework created during the pandemic to help heavily-indebted countries find a path to restructure their obligations has been moving at a snail’s pace.

According to available data, 46 of the 54 countries had amassed public debt totalling $782 billion in 2020, the report said.

Argentina, Ukraine and Venezuela alone account for more than a third of that amount.

The situation is deteriorating rapidly, with 19 of the developing countries now effectively shut out of the lending market — 10 more than at the start of the year.

– ‘Missing ingredient’ –
A third of all the developing economies have meanwhile seen their debt labelled as being “substantial risk, extremely speculative or default,” UNDP’s chief economist George Gray Molina told reporters.

The countries at the most immediate risk are Sri Lanka, Pakistan, Tunisia, Chad and Zambia, he said.

Gray Molina said private creditors have so far been the biggest obstacle to moving forward with needed restructuring.

But he suggested that the current market conditions could pave the way for a debt deal, as private creditors see the value of their holdings plunge by as much as 60 percent.

“When emerging market bonds trade at 40 cents on the dollar, private creditors suddenly become more open to negotiation,” he said.

“The incentives are to now join a negotiation where you might accept the haircut of 20 cents on the dollar, 15 cents on the dollar and 30 cents on the dollar.”

But willing creditors are not enough to actually nail down a much-needed debt-relief agreement, Gray Molina acknowledged.

“The missing ingredients at this moment are financial assurances from major creditor governments to clinch a deal.”

Steiner, who has repeatedly raised the alarm about the crisis, voiced hope the international community might finally recognise that action is in everyone’s shared interest.

“Prevention is better than treatment and certainly… much, much cheaper than having to deal with a global recession,” he said.

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Rep felicitates Wike on emergence as THISDAY/Arise TV Minister of the Year

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Wike visits scene of collapsed building, insists structures without approval will go down

The Chairman House of Representatives Committee on Federal Capital Territory (FCT), Rep. Aliyu Betara (APC-Borno), has congratulated the FCT Minister, Mr Nyesom Wike, on his emergence as THISDAY/Arise TV Minister of the Year.

Betara, in a congratulatory message issued in Abuja, eulogised the leadership virtue and dedication of the minister to infrastructural development in the territory.

The lawmaker, representing Biu/Bayo/Shani/Kwaya Kusar Federal Constituency of Borno, said that the award was well-deserved.

“On behalf of the House of Representatives Committee on FCT, I wish to extend my warmest congratulations to the FCT Minister, Mr Nyesom Wike, on your well-deserved recognition as the Minister of the Year by THISDAY/Arise TV.

“This prestigious honour is a testament to your visionary leadership, tireless dedication and exceptional contributions to the infrastructural transformation in the territory.

“Your unwavering commitment to service and your determination to improve the lives of residents and visitors alike to the FCT has been nothing short of exemplary.

“Through your bold initiatives and strategic policies, you have not only enhanced the aesthetics and functionality of Abuja, but have also reaffirmed the FCT’s position as a beacon of progress and modernity in Nigeria,” he said.

Betara said that the recognition was a reflection of the positive impact of Wike’s work and the admiration he had earned across various sectors.

While describing the recognition as an outstanding achievement, the lawmaker prayed that the milestone would serve as an inspiration for greater accomplishments in service, with integrity and purpose.

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Court adjourns case against ex-Kogi governor, others

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A Federal Capital Territory High Court on Wednesday, adjourned hearing in the alleged money laundering case against  former governor of Kogi, Yahaya Bello until April 3 and April 24.

Justice Maryann Anenih adjourned the case for continuation of hearing after the first witness, Fabian Nworah, a property developer, was called to testify.

The Prosecution Counsel, Kemi Pinheiro, SAN, informed the court that he had five witnesses to call for the day.

Justice Anenih said she could only take one witness as she had other matters to attend to.

The court also announced that it would not be sitting on Thursday as previously scheduled.

Counsel for the 1st and 2nd Defendants, Joseph Daudu, SAN, however, informed the court that the prosecution had not made the statements on oath of the 2nd defendant available to the defence team.

He said he was aware that the first defendant had not made any statement.

Daudu also objected to the witness presented by the prosecution, arguing that the defendants had no prior knowledge of the witness and were only seeing him in court for the first time.

Citing authorities, he emphasised that legal proceedings should not be a “hide and seek” game, stating that the prosecution was required to provide the witness’ statements on oath in advance so the defence could adequately prepare for cross-examination.

“The statements of the second defendant have not been served on us to be able to know if we will be able to represent him or not.

“So, it is a serious handicap on us. They need to serve us all the statements made by the defendants.

“I understand the first defendant has not made a statement. Fortunately, we are still within the house keeping stage of the proceeding,” he added.

Corroborating this, counsel for the 3rd Defendant, Abubakar Aliyu, SAN, said, “mine is not a comment but an observation my lord. My application is for the court to order the prosecution to provide us with the statements of the 2nd and 3rd defendants.”

When the judge asked if he had requested for the statements, Aliyu SAN said, he discovered on Tuesday that the said statements were not part of the proof of evidence served on the defendants.

He said: “I am also applying that the court order the prosecution to provide us with copies of recovered digital device and the report or the extract therefrom mentioned on Page 14 of Volume 1 of the proof of evidence and the report of the forensic expert if any.

“I am following the procedure followed in Okoye against the Commissioner of Police, which was adopted by the Supreme Court in Okemini Vs Commissioner of Police.”

The prosecution witness, however, disagreed, saying the defendants were trying to delay speedy trial.

He insisted that the proof of evidence was served on the defendants on Nov. 27, 2024.

“The constitutional provisions, which they rely on, does not imply that the prosecution should provide all the documents which it relies on.

“The law only provides that the prosecution should oblige the defence with all the documents requested for,” Pinheiro argued.

He noted that the issues would be addressed whenever they receive formal applications from the Defendants and urged the court to proceed on the business for the day.

“As it is, we have almost utilised more than an hour on these arguments,” he stated.

The judge asked the defendant’s counsel why he did not raise the issues in December.

Daudu SAN replied that it was because it had to be done after arraignment.

“I have applied and they are not obliging me. It is absolutely necessary for our defence,” counsel for the 3rd defendant said.

The judge, however, declined the application for adjournment and directed the prosecution to proceed with the case.

The prosecution then proceeded to call its first witness, Fabian Nwora, a property developer with EFAB Property Nigeria Limited.

Nwora testified that he was invited to the Economic and Financial Crimes on Feb. 8, 2023, regarding a transaction between Shehu Bello and EFAB Property concerning a property located at No. 1 Ikogosi Street, Maitama.

He stated that he sold the said property to Shehu Bello but observed that the name on the sale agreement was Dr Bello Ohiani, not Shehu Bello.

He said, in 2023, Shehu Bello approached EFAB Property, informing them that the property was under investigation by the EFCC.

He returned all documents related to the purchase and demanded a refund of the N550million that was paid.

Subsequently, he said, EFAB Property was invited by the EFCC to explain what transpired between them and Shehu Bello.

The EFCC instructed the company to refund the entire sum to an EFCC-designated account. EFAB Property complied in two batches of N400 million and N150 million.

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Kebbi to upgrade Zuru hospital to referral centre

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The Kebbi Government says it is assessing the condition of the Zuru General Hospital with the aim of upgrading it to a referral centre.

Gov. Nasir Idris stated this when he visited the Emir of Zuru, Alhaji Muhammadu Sani-Sami on Wednesday in Zuru.

Idris visited the emir to thank the people of Fakai, Sakaba, Danko/Wasagu and Zuru Local Government Areas that make up the emirate.

Idris said that upgrading the Zuru General Hospital to a referral centre would ease the difficulties faced by people of the emirate.

The governor said that quality healthcare services remained an utmost priority of his administration.

He said that the Sir Yahaya Memorial Hospital, Birnin Kebbi and the State Medical Centre, Kalgo, currently serving as referral health institutions were overstretched.

“The government is committed to reversing the trend by making referral hospitals close, accessible and affordable to the people of the state,” he said.

On the expansion of the Zuru Water Works and construction of urban township roads, Idris promised to reappraise the facilities for necessary action.

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