New Delhi: India’s neighbouring nation is facing the worst financial collapse in its history, as a major shortage of US dollars has pushed the prices of even basic needs including edible items, medical essentials, fuel and more to an all-time high, making it impossible for most of its public to afford them.
Amidst the global inflation scenario, not just Lanka but a dozen of other countries across the globe are on a sharp brink of a major economic crisis. Here’s a look at the top five countries likely to see a viral financial collapse in the coming time.
Check list here
1. Argentina
After its debt restructuring in the year 2020, the forex reserves of the South American country are carping low with bonds trading at just 20 cents a dollar.
2. Ukraine
Investors such as Amundi and Morgan Stanley believe that the war-struck country will have to restructure a debt of over $20 billion. Notably, a payment of $1.2 billion of bond is due for September this year.
3. Tunisia
Amid the extreme rigid situation between President Kais Saied’s thrust to power and united labour unions, the country is facing a giant 10% budget deficit. Tunisia also happens to be in Morgan Stanley’s list of likely defaulters.
4. Ghana
Ghana’s debt-to-GDP ratio has taken off to as high as 85 percent due to excessive borrowing. The Republic of Ghana is close to 30 percent in terms of inflation, with it utilizing over half of its tax revenues in payment of debt interest.
5. Egypt
The country linking northeast Africa with the Middle East has seen the biggest fleeing of foreign cash this year, with its debt-to-GDP ratio standing at 95 percent. News reports suggests that the nation is required to make a meaty payment of $3.3 billion bond in 2024 and a debt intrest of $100 billion of hard currency in next five years.
