Fears grow that US action on inflation will trigger debt crisis

Poor country repayments to creditors are running at highest level in two decades

Fears are growing that action by the US central bank to combat high inflation will trigger a fresh debt crisis, as it emerged poor-country repayments to creditors are already running at their highest level in two decades.

The Jubilee Debt Campaign said debt payments by developing countries had more than doubled since 2010 and were likely to increase further if, as expected, the Federal Reserve pushed up interest rates.