An online article from the London based Public Finance International organization has listed Belize as one of twenty seven countries in debt crisis. The publication is dated May 16, 2017 and speaks of countries that are not only in debt crisis but those that are at risk of falling into that category. The Jubilee Debt Campaign is a coalition of national organisations and local groups around the UK, calling for the unjust and unpayable debts of the poorest countries to be cancelled.
In this article they are quoted as saying that public services in some of the world’s poorest countries are being starved of resources as a result of their government’s heavy debt loads. It goes on to read, quote, “The campaign joins a number of other organisations, including the International Monetary Fund and the United Nations, in raising the alarm about worrying levels of both public and private debt around the world.Tim Jones, economist at Jubilee Debt Campaign UK, said that the world is “woefully underprepared” for any new round of debt crises, without any fair and transparent restructuring process for government debts or efforts to strengthen regulation of bank lending or cross-border movements of money.” End of quote.
When it comes to a country’s public debt, the Jubilee Campaign reportedly looks at whether the country has a big economic imbalance with other countries – whether it is a net lender or a net borrower – and the size of its debt payments as a proportion of revenues, as well as the potential impact of an economic shock. According to Jones the IMF focuses on the point at which a country would default while Jubilee’s analysis instead focuses on the point at which a country’s public services start to be affected, by austerity measures for instance.
Joining Belize on the Jubilee Campaign’s list of countries that are in debt crisis are the Dominican Republic, Grenada and Jamaica, among others. Among the seventeen countries that are at risk of public debt crisis are Dominica, Guyana and St Vincent. The campaign noted that the levels of domestic debt are not taken into account, while countries with debt in arrears, such as Zimbabwe or Somalia, are excluded as they are not currently paying.