US interest rate rise to deepen debt crisis in developing world

Poorest countries hit hardest as lower commodity prices and strong dollar raises repayment bills, campaigners warn

Developing countries are struggling with steep rises in their debt payments after being hit by a double whammy of lower commodity prices and a stronger dollar, with more pain to come once the US central bank raises interest rates this week, campaigners warn.

The Jubilee Debt Campaign said that some of the world's poorest countries have seen the cost of repaying their debts - as a proportion of government revenue - hit the highest level for a decade. Government coffers have been depleted by lower revenues from commodity exports and the size of dollar-denominated debts has risen as the US currency has strengthened.