A global debt crisis could spark fuel instability and violence around the world

From Latin America’s lost decade in the 1980s to the more recent Greek crisis, there are plenty of painful reminders of what happens when countries cannot service their debts. 

Many countries will be forced to default. Others will cobble together scarce resources to pay creditors, cutting back on much-needed health and social expenditures. 

While the Covid-19 pandemic rages, more than 100 low-and middle-income countries will still have to pay a combined $130bn in debt service this year  — around half of which is owed to private creditors. 

With much economic activity suspended and fiscal revenues in free fall, many countries will be forced to default. Others will cobble together scarce resources to pay creditors, cutting back on much-needed health and social expenditures.