The International Monetary Fund has estimated that global public debt will reach a record-high of about 100 per cent of GDP before the end of 2020.
It said although global economy is coming back from the depths of the crisis, risks which include rising bankruptcies and stretched valuations in financial markets, remain high.
The fund’s managing director, Kristalina Georgieva, said this on Tuesday at the celebration of the 125th anniversary of the London School of Economics.
“We estimate that global public debt will reach a record-high of about 100 percent of GDP in 2020.”
Ms Georgieva said there was also now the risk of severe economic scarring from job losses, bankruptcies, and the disruption of education.
“Because of this loss of capacity, we expect global output to remain well below our pre-pandemic projections over the medium term. For almost all countries, this will be a setback to the improvement of living standards.
“This crisis has also made inequality even worse because of its disproportionate impact on low-skilled workers, women, and young people. There are clearly winners and losers—and we risk ending up with a Tale of Two Cities. We need to find a way out.”
Nigeria’s foreign debt
The fall in crude oil price at the global market, which was aided by Saudi Arabia and Russia oil price war, and the outbreak of the COVID-19 pandemic affected Nigeria’s foreign revenue
According to the Debt Management Office (DMO), the country’s total external debt stands at about N11.363 trillion, or $31.477 billion as of June 30, 2020.
Breakdown of the debts stock, showed that the multilateral loans category consisted IMF $3.359 billion, while the loans owed the World Bank Group and African Development Bank (AfDB) Group is $16.36 billion.
The three financial institutions accounted for about 52 per cent of the country’s total $31.477.14 billion debt stock.