The lack of an effective debt relief scheme forces some of the world's poorest countries to cut public spending to maintain payments to their creditors, reveals a report by the British Debt Justice, cited by "The Guardian" and the newspaper Economico.

The report points out that the most indebted nations are expected to reduce public spending by 3% on average between 2019 and 2023, despite the need to combat the impact of rising food and energy prices.

Using International Monetary Fund (IMF) data for debt and public spending, the report states that the disparity between high and low debt countries underscored the need for more comprehensive relief. Low-debt countries will increase spending by an average of 14% between 2019 and 2023.

The report is published to coincide with an inquiry published this week by the UK House of Commons international development committee into the debt crisis in low-income countries, which is causing concern at both the IMF and the World Bank.

In the early stages of the Covid-19 pandemic in 2020, the G20 agreed to a common framework for debt treatment, but no country has yet benefited from relief through the scheme, in part due to opposition from private creditors.

Noting that 90% of the bonds of countries eligible for the G20 debt relief scheme were governed by English law, Woolfenden said that the UK "must act to ensure that private creditors participate in debt relief. Debt payments to wealthy creditors should not take precedence over people's needs at a time of multiple crises."

Debt Justice identifies Sierra Leone as one of the countries forced to divert resources from public spending to debt repayment. The report highlights that the country's high debt was created during the Ebola crisis in 2014 and 2015, but increased as a result of the pandemic.

The IMF expects real public spending per person in 2023 to be 20% lower than in 2015 and 4% lower than in 2019. This low level of spending should be maintained until at least 2025, Debt Justice says.