Latest news with #Grynspan
Scoop
3 days ago
- Business
- Scoop
New UN Report Charts Path Out Of Debt Crisis Threatening Global Development
On Friday, Deputy Secretary-General Amina Mohammed launched a new report, Confronting the Debt Crisis: 11 Actions to Unlock Sustainable Financing. She was joined by experts Mahmoud Mohieldin and Paolo Gentiloni, along with Rebeca Grynspan, Head of the UN Conference on Trade and Development (UNCTAD). A growing crisis 'Borrowing is critical for development,' Ms. Mohammed said, but today, 'borrowing is not working for many developing countries, over two-thirds of our low income countries are either in debt distress or at a high risk of it.' The crisis is accelerating, Ms. Grynspan warned. More than 3.4 billion people now live in countries that spend more on interest payments than on health or education – 100 million more than last year. Debt service payments by developing countries have soared by $74 billion in a single year, from $847 billion to $921 billion. 'The nature of this crisis is mostly connected to the increase of debt servicing costs,' Mr. Gentiloni explained. 'Practically, the debt services costs doubled in the last ten years.' Prepared by the UN Secretary-General's Expert Group on Debt, the report reinforces the commitments put forward in the Compromiso de Sevilla, the outcome document of the Fourth International Conference on Financing for Development – taking place next week. A path forward The report outlines 11 actions that are both technically feasible and politically viable. Mr. Mohieldin explained that the recommendations fall under two key goals: providing meaningful debt relief and preventing future crises. It identifies three levels of action: At the multilateral level: repurpose and replenish funds to inject liquidity into the system, with targeted support for low-income countries. At the international level: establish a platform for borrowers and creditors to engage directly. At the national level: strengthen institutional capacity, improve policy coordination, manage interest rates, and bolster risk management. 'These are eleven proposals that are doable and that only need the political will of all the actors to be able to make them real,' Ms. Grynspan stressed.
Business Recorder
4 days ago
- Business
- Business Recorder
Developing states' debt service tops $921bn: UN
UNITED NATIONS: Debt service payments by developing countries soared by $74 billion in 2024, ie, from $847 billion to $921, according to a new UN report, which points out that two-thirds of the low income nations are either in debt distress or at a high risk of it. The report, 'Confronting the Debt Crisis: 11 Actions to Unlock Sustainable Financing,' was launched on Friday by UN Deputy Secretary-General Amina Mohammed. Mohammed was joined by experts Mahmoud Mohieldin and Paolo Gentiloni, along with Rebeca Grynspan, Head of the UN Conference on Trade and Development (UNCTAD). Debt and climate — I 'Borrowing is critical for development,' Ms Mohammed said, but today, 'borrowing is not working for many developing countries, over two-thirds of our low income countries are either in debt distress or at a high risk of it.' The report showed a 'silent crisis' of surging debt service payments in low-income countries and charted the path out of the debt crisis threatening global development. Ms Mohammed regretted that a decade after the adoption of the Sustainable Development Goals (SDGs), development was facing serious headwinds. On her part, Grynspan warned that the crisis was accelerating. The report showed more than 3.4 billion people now live in countries that spend more on interest payments than on health or education, 100 million more than previous year. 'The nature of this crisis is mostly connected to the increase of debt servicing costs,' Gentiloni explained. 'Practically, the debt services costs doubled in the last 10 years.' Prepared by the UN Secretary-General's Expert Group on Debt, the report reinforced the commitments put forward in the 'Compromiso de Sevilla', which is the outcome document of the Fourth International Conference on Financing for Development – taking place in Sevilla, Spain, next week. The report outlines 11 actions that are both technically feasible and politically viable. Mohieldin explained that the recommendations fall under two key goals: providing meaningful debt relief and preventing future crises. It identified three levels of action including repurpose and replenish funds to inject liquidity into the system, with targeted support for low-income countries at the multilateral level. The other is establishing a platform for borrowers and creditors to engage directly at the international level: At the national level, the report recommended strengthening institutional capacity, improving policy coordination, managing interest rates and bolstering risk management. 'These are 11 proposals that are doable and that only need the political will of all the actors to be able to make them real,' Grynspan stressed.
Scoop
19-06-2025
- Business
- Scoop
World News In Brief: Global Investment Plunges, Hurricane Season In Haiti, Rising Cholera And Hunger In South Sudan
19 June 2025 Their latest data shows that the outlook for international investment this year 'is negative', a sharp course correction from January, when 'modest' growth seemed possible. The reasons for this range from trade tensions and tariffs whose main effect has been a 'dramatic increase in investor uncertainty', said UNCTAD Secretary-General Rebeca Grynspan. She said that investment in renewable energy, water and sanitation fell by some 30 per cent and that agriculture saw a 19 per cent drop in investor confidence. Only the health sector saw an increase of nearly 20 per cent, Ms. Grynspan said, although that only accounts for 'less than $15 billion globally'. 'Very real consequences' 'Behind those numbers are very real consequences. Jobs not created,' she said. 'Infrastructure not built, sustainable development delayed. What we see here is not just a downturn. It is a pattern.' Ms. Grynspan also cited 'growing geopolitical tensions' in addition to rising trade barriers around the world as reasons for the fall in global investment for development. In critical sectors as hi-tech industries and rare earth minerals, governments are also tightening screening measures on proposed foreign investment, the UN agency noted. Supplies to limit hurricane impact in Haiti critically low The Humanitarian Country Team in Haiti warned Wednesday that funding and pre-positioned contingency supplies are critically low ahead of what is forecast to be an above-average hurricane season. Haiti is highly vulnerable to extreme weather, with 96 per cent of the population at risk. Forecasts project 12 to 19 tropical storms and up to five major hurricanes this year. The alert comes as the fragile island nation grapples with a worsening humanitarian crisis. Armed gangs control much of the country, the collapse of essential services and growing displacement have left 5.7 million people food insecure, 1.3 million displaced and 230,000 living in makeshift shelters ill-equipped to withstand severe weather. Limited preparations Humanitarian actors have pre-positioned limited stocks of essential items, but they are at a record low for a hurricane season posing such high risk. For the first time, Haiti will begin the hurricane season without pre-positioned food supplies or the financial resources necessary to initiate a rapid response. Meanwhile, UN Humanitarian Office (OCHA) is coordinating missions with UN agencies and partners to assess how to safely resume aid operations in high-need areas, following their suspension on 26 May due to insecurity. 'I am deeply concerned for communities, families, and vulnerable groups who have already been affected by violence and are living in precarious conditions,' said Ulrika Richardson, Humanitarian Coordinator in Haiti, calling for immediate support. As of mid-June, the $908 million Humanitarian Response Plan for Haiti is just 8 per cent funded. Worsening cholera and hunger in South Sudan OCHA raised the alarm on Thursday over rising malnutrition and cholera cases in war-torn South Sudan. An estimated 2.3 million children under five urgently need treatment for acute malnutrition, a 10 per cent increase since last July. This crisis is unfolding amid the world's most severe cholera outbreak this year, with almost 74,000 cases and at least 1,362 deaths reported as of 16 June. The start of the rainy season and waning immunity risk a significant surge in infections. UN response The 2025 Humanitarian Needs and Response Plan for South Sudan is only 20 per cent funded. Despite limited resources and many challenges, the UN and partners have scaled up efforts, delivering vaccines and life-saving aid to contain the disease and protect the most vulnerable. 'This dire situation is a stark reminder that we need funding urgently to expand food assistance, to expand nutrition and expand health services to those who need it the most,' said UN Spokesperson Stéphane Dujarric at the daily briefing in New York.
New Straits Times
19-06-2025
- Business
- New Straits Times
Global investment decline may worsen due to tariffs, UN trade agency warns
GENEVA: Global foreign direct investment fell for the second consecutive year in 2024, with fears this year could be even worse as trade tensions rock investor confidence, the United Nations agency for trade and development said in a report published on Thursday. Foreign Direct Investment transactions, which do not include several European conduit economies, declined by 11 per cent, indicating a significant reduction in actual productive investment activity, according to UNCTAD. Geopolitical tensions and trade fragmentation contributed to lower investment last year as they created uncertainty, which UNCTAD Secretary-General Rebeca Grynspan described as a "poison" for investor confidence. "We are even more worried about the picture in already feel that investment is are affecting growth," Grynspan told Reuters, with short-term risk management being prioritised over long-term investment. UNCTAD said its outlook for international investment in 2025 was negative due to trade tensions. Early data for the first quarter of 2025 shows record low deal and project activity. When several European conduit economies - which act as intermediary hubs where investments temporarily pass through before reaching their final destinations - are included, the data showed that FDI increased by 4 per cent to US$1.5 trillion. However, UNCTAD noted that this figure masks the reality that much of this investment is merely passing through these jurisdictions and was not productive. "We see a very worrying that has a real impact on jobs and infrastructure is going down," she said. Developed economies suffered a sharp drop in investment, with a 58 per cent decrease in Europe. North America, however, observed a 23 per cent increase in FDI, led by the US, while countries in Southeast Asia reached the second-highest level of FDI on record with a 10 per cent rise, representing US$225 billion. Though capital inflows in developing countries were broadly stable, UNCTAD observed that capital was not being injected into crucial job-creating sectors such as infrastructure, energy and technology.
The Star
18-06-2025
- Business
- The Star
UN trade agency says it faces 'painful' cuts as countries navigate tariffs
FILE PHOTO: The logo of the United Nations is seen in the General Assembly hall before heads of state begin to address the 76th Session of the U.N. General Assembly in New York City, U.S., September 21, 2021. REUTERS/Eduardo Munoz/Pool/File photo GENEVA (Reuters) -The United Nations trade and development agency, tasked with helping developing countries access the global economy, faces "painful" cuts as part of broader reforms prompted by a decline in global donor funding, its secretary general said. Rebeca Grynspan told Reuters she was concerned that UNCTAD's work will be hampered while demand for its services grows, as countries seek information on the impact of sweeping tariffs imposed by U.S. President Donald Trump. For UNCTAD's 2026 budget, Grynspan said she and her team had proposed cutting 70 posts, out of a total of about 500. "This is painful. There's no way to disguise this ... we haven't cut that number of posts ever in one budget," she said. "It really will constrain the organization and the things that we can do." U.N. agencies like UNCTAD are having to cut costs amid a financial crisis triggered in part by the U.S., which has provided nearly a quarter of the world body's funding, and longer term liquidity problems. "What worries me the most is the possibility to respond to countries in their needs fast enough," Grynspan said. Grynspan, who is part of the task force on broader UN80 reforms to improve efficiency and cut costs at the U.N., said she was involved in discussions on how to better divide tasks among the U.N's development agencies through collaboration. The U.N. Secretariat, the global body's executive arm, is preparing to slash its $3.7 billion budget by 20%. About 75 agencies and departments faced a June 13 deadline to propose budget cuts. The U.N. in Geneva is proposing leaving the historic Palais Wilson, which houses its human rights office. The final decision on UNCTAD's proposed budget will be made by the U.N. Secretariat and member states in September. (Reporting by Olivia Le Poidevin; Editing by Aidan Lewis)
