Why a debt tsunami is coming for the global economy

The Indicator from Planet Money

NPR

Business

4.7 • 9.2K Ratings

🗓️ 8 February 2023

⏱️ 9 minutes

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Summary

Low-income countries are falling behind on their debt payments. Countries like Zambia, Chad and Sri Lanka have already defaulted, and others could be on the brink. Today, we examine the escalating debt crisis in the global economy and how the International Monetary Fund says it's going to help.

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Transcript

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0:00.0	NPR.
0:12.4	This is the indicator from planet money, I'm Whelan Wong.
0:14.9	And I'm Darien Woods.
0:16.4	As interest rates have risen, there are urgent debt crises looming in the global economy.
0:21.9	About 60% of low-income countries are having trouble keeping up with debt payments.
0:27.0	That number is growing at an alarming rate.
0:29.0	It has doubled in just the last few years.
0:31.7	This long list includes countries like Tonga, Ethiopia and Sudan.
0:35.9	Many of them have a staggering number of people living in poverty and are dealing with
0:39.6	a lot of economic pain that these loans are supposed to help them with.
0:42.8	It's a huge concern for an organization that's supposed to help stabilize the global financial
0:47.7	system and help countries prosper.
0:50.3	That's the International Monetary Fund or the IMF.
0:53.6	And lately, the IMF has been sounding an alarm bell about what it sees as a dangerous
0:58.4	debt wave threatening to overwhelm a lot of countries.
1:02.2	Today on the show, we talk to a leader at the IMF about how so many countries found
1:08.1	themselves in trouble and what the fund is doing to try to keep the global debt crisis
1:12.2	from escalating further.
1:19.7	Jaila Pizarbajola is an economist who's been a senior official at the IMF for two decades.
1:24.8	I basically cover issues related to IMF policies, strategic vision, as well as review of our
1:32.6	work.
1:34.0	That sounds like everything.
	...

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