Of countries ranked among the top 10 with high debt risk exposure globally, Nigeria is currently number 5, estimated at $11.7 billion.
Moreover, it was gathered that World Bank would disburse $19.54 billion loans to Nigeria. Already, the bank approved $1.46 billion loans but not yet signed, with a $6.61 billion signed loan commitment and $11.47 billion outstanding payment.
The rankings are among other top globally recognised debtors. In the order of appearance, India owes an overwhelming sum of $22 billion, followed by Bangladesh- $18.1 billion, Pakistan- $16.4 billion, Vietnam- $14.1 billion, then Nigeria.
Number 6 on the list is Ethiopia with $11.2 billion, Kenya- $10.2 billion, Tanzania, $8.3 billion, Ghana, $5.6 billion, and Uganda, $4.4 billion.
Nigeria 5th Nation with High Debt Risk
According to the ‘The fiscal Year 2021, FY21 Financial Document, published by the International Development Association, IDA, back on June 30, the ten countries with the highest exposures accounted for 66% of IDA’s total debt exposure.
IDA, World Bank‘s financial institution that offers concessional loans and grants to the poorest developing countries, hinted that the Single Borrower Limit, SBL, for FY22, has been set at $45 billion, that’s 25 per cent of $180.9 billion of equity as of June 30, 2021, marginally higher than FY21.
To arrive at the total estimations by IDA, the bank revealed that monitoring these exposures relative to the SBL requires consideration of the repayment profiles of existing loans and disbursement profiles and projected new loans and guarantees.
IDA said it has “agreed to provide debt relief in return for future compensation from members for forgone reflows, ensuring that IDA’s financial capacity would not be reduced.
“For a borrower to be eligible for debt relief on its loans with IDA, it is required to maintain macroeconomic stability, carry out key structural and social reforms, and maintain all loans in accrual status”.