Gauging debt's burden Borrowing is essential for financing development and is a fundamental aspect of the global economic system. Ideally, a country borrows to boost long-term productivity and economic output and to advance in human development, with gains from economic growth and exports going to further stimulate the economy and repay lenders the principal and interest owed. Too often the poor, especially children, pay the highest price, deprived of basic health care, nutrition and education because a significant proportion of government resources goes to servicing debt. The most debt-distressed countries top the regional lists. But their debt burdens are not equal.
Averages often mask serious disparities.
The ratio of debt service to exports also determines whether poor countries' debts are 'sustainable', as do the terms on which debt is incurred. 235 Algeria 69 Georgia 28 Angola 232 Tunisia 63 Regional average 20 Congo, Dem. 98 Hungary 55 Cambodia 70 Ecuador 87 Moldova, Rep. 52 Indonesia 65 Panama 75 Slovakia 52 Thailand 63 Bolivia 68 Czech Rep.