Labour has got the message – developing nations suffer most from bond market turmoil | Heather Stewart
News Source
•Sun, 11 Oct 2026 10:11:19 GMT
📰 What Happened
Writing from Bangkok, Guardian columnist Heather Stewart says heavily indebted developing countries are bearing the worst of recent global bond market turmoil. Investors have sold government bonds over the war in the Middle East and heavy US borrowing, pushing up interest rates nearly everywhere. Finance ministers and central bankers are meeting in Bangkok for the IMF and World Bank annual meetings. The article says Andy Burnham aims to champion debt relief.
🔍 The Backstory
Many poorer countries spend a large share of their budgets just paying interest on old loans. The UN has warned of a 'triple shock' hitting developing nations. High debt payments leave less money for hospitals, schools and adapting to climate change. Stewart compares Burnham's push to the debt-relief campaign led by Gordon Brown and Tony Blair in 2005.
🎯 Why It Matters
When poor countries cannot pay their debts, they cut spending on hospitals, schools and climate protection. That fuels poverty and migration, which affects the whole world.
Writing from Bangkok, Guardian columnist Heather Stewart says heavily indebted developing countries are bearing the worst of recent global bond market turmoil. Investors have sold government bonds over the war in the Middle East and heavy US borrowing, pushing up interest rates nearly everywhere. Finance ministers and central bankers are meeting in Bangkok for the IMF and World Bank annual meetings. The article says Andy Burnham aims to champion debt relief.
Many poorer countries spend a large share of their budgets just paying interest on old loans. The UN has warned of a 'triple shock' hitting developing nations. High debt payments leave less money for hospitals, schools and adapting to climate change. Stewart compares Burnham's push to the debt-relief campaign led by Gordon Brown and Tony Blair in 2005.
When poor countries cannot pay their debts, they cut spending on hospitals, schools and climate protection. That fuels poverty and migration, which affects the whole world.