The COVID19 Pandemic has left most countries economies topsy turvy. Countries providing economic stimulus packages and banks providing enormous interest rates on savings, along with moratorium offered by banks, job losses, pay cuts and closing of various factories has led to a fiscal deficit and loss of valuable import money all over the world. Countries are therefore borrowing money from the various institutions.
During the World war Britain took enormous debts to fund the war and still happens to pay the same from through their tax payers. Most countries are still recovering from the financial crises of 2008.
Some countries were already in debt before the COVID pandemic hit. These countries were already struggling to make their debt payments. With the pandemic it will only enhance their problems further and they may not be able to pay at all.
All these repayments will come at a cost not only to to citizens in order of paying higher taxes but also at the cot of medical services and social security offered by the Government to the citizens. Simple projects like rod construction, housing, metros development etc may come to a standstill and will take the economic growth to a much slower growth than it is currently.
The problem will be worst in Developing countries. The world bank has already suspended any payments from these countries. The massive debt that these countries will incur during these months in terms of interest will be enormous and the citizens will have to pay it over a period of decades unless the people step up increase production, try alternative means of earning the much needed foreign currency and help alleviating financial crisis.
During the World war Britain took enormous debts to fund the war and still happens to pay the same from through their tax payers. Most countries are still recovering from the financial crises of 2008.
Some countries were already in debt before the COVID pandemic hit. These countries were already struggling to make their debt payments. With the pandemic it will only enhance their problems further and they may not be able to pay at all.
All these repayments will come at a cost not only to to citizens in order of paying higher taxes but also at the cot of medical services and social security offered by the Government to the citizens. Simple projects like rod construction, housing, metros development etc may come to a standstill and will take the economic growth to a much slower growth than it is currently.
The problem will be worst in Developing countries. The world bank has already suspended any payments from these countries. The massive debt that these countries will incur during these months in terms of interest will be enormous and the citizens will have to pay it over a period of decades unless the people step up increase production, try alternative means of earning the much needed foreign currency and help alleviating financial crisis.
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