The increase in the cost of borrowing for low-income countries rose by 5.7 percentage points on average, three times the rise in interest rates in the United States, which drives two-thirds of poor countries away from financial markets.

According to data from the non-governmental organization (NGO) 'Debt Justice', "average interest rates on new loans charged to low-income countries have risen 5.7 percentage points this year, almost three times the rate of increase in U.S. interest rates."

In the analysis sent to Lusa, this NGO dedicated to debt issues explains that "for two thirds of the lower income countries, interest rates are so high that these countries are probably unable to take out new loans from external private creditors.

The debt crisis affecting the poorest countries, among which are several in sub-Saharan Africa, is getting worse with deteriorating financial conditions, added to which is the climate emergency, the activists warn.

Of the 27 lowest income countries, Debt Justice points out that there are already nine countries with interest rates above 20%, including the Africans Ethiopia, Ghana, Tunisia and Zambia, joined by El Salvador, Maldives, Pakistan, Sri Lanka and Ukraine.

Ten others, the text adds, face interest rates above 10% if they want to go to the market, and in this lot is Angola, besides others like Cameroon, Egypt, Kenya, Nigeria or Rwanda.

"This interest rate is a measure of what the interest rate on new private sector borrowing would be, although rates above 10% suggest that borrowing will not be possible," the activists point out.

In addition to the interest rate, 'Debt Justice' also points out that for the 27 countries covered in this study, "the dollar grew 14% in value compared to local currencies; as external debts tend to be paid in foreign currencies, especially the dollar, this immediately increases the relative size of debt payments in local currencies."(Lusa)