GLOBAL DEBT WATCH: ARGENTINA, UKRAINE, EGYPT TOP LIST OF MOST INDEBTED NATIONS TO THE IMF

GLOBAL DEBT WATCH: ARGENTINA, UKRAINE, EGYPT TOP LIST OF MOST INDEBTED NATIONS TO THE IMF

— By Anthony Nwosu | April 2, 2025

As nations across the globe grapple with fiscal imbalances, inflation, and post-pandemic recovery challenges, a new report has spotlighted the top 15 countries most indebted to the International Monetary Fund (IMF), revealing Argentina as the largest debtor with a staggering $31.10 billion obligation.

According to data released by Statisense on April 2, 2025, the list underscores the growing reliance of struggling economies on IMF support amidst global economic instability, currency devaluation, and domestic policy constraints.

Top 5: Heavily Reliant and Highly Indebted

Argentina leads the chart with a monumental $31.10 billion owed to the IMF. The South American giant has long struggled with chronic inflation, currency depreciation, and successive debt restructuring negotiations. The country’s reliance on IMF support intensified in recent years following a series of bailouts and economic reform packages.

Ukraine ranks second with $10.86 billion in IMF debt, a reflection of ongoing war-induced fiscal strain and the high costs of rebuilding critical infrastructure amidst continued geopolitical tension with Russia.

Egypt comes in third with $8.63 billion. The North African nation has faced mounting economic pressure due to dwindling foreign reserves, soaring inflation, and structural reform obligations tied to IMF assistance.

Ecuador ($6.43 billion) and Pakistan ($6.23 billion) round out the top five. Both nations have faced balance of payment crises and have negotiated multiple funding tranches from the IMF to stabilize their fragile economies.

Sub-Saharan African Economies Under the Lens

Several African nations also feature prominently on the list, highlighting the continent’s fiscal vulnerabilities:

  • Kenya owes $3.02 billion, reflecting its ongoing battle with public debt servicing and currency devaluation.
  • Angola follows closely with $2.84 billion, largely due to oil price shocks and fiscal management challenges.
  • Côte d’Ivoire and Ghana carry debts of $2.68 billion and $2.48 billion respectively, with both West African nations embarking on aggressive reform paths to meet IMF conditions and restore investor confidence.
  • Democratic Republic of Congo (DRC) and Ethiopia owe $1.79 billion and $1.46 billion respectively, underscoring the IMF’s expanding role in supporting fragile states and post-conflict economies.

Asia and Middle East Also Represented

In South and Southeast Asia, Bangladesh ($2.00 billion) and Sri Lanka ($1.52 billion) have turned to the IMF for lifelines amid economic instability. Sri Lanka, in particular, has undergone a dramatic debt crisis and near default that necessitated urgent multilateral aid.

Jordan ($1.49 billion) and Costa Rica ($1.88 billion) also feature on the list, reflecting the IMF’s global footprint in providing emergency financing and extended credit facilities.

Global Financial Outlook

These figures highlight the continued dependence of economically vulnerable nations on multilateral institutions. As the IMF plays a pivotal role in global financial stability, these debts raise key questions about the sustainability of repayment, the social costs of reform conditions, and the need for broader systemic solutions to prevent perpetual indebtedness.

With many of these countries facing rising debt-to-GDP ratios, high inflation, and social unrest stemming from austerity measures, observers are calling for debt restructuring conversations and innovative financing solutions to ease their burdens and foster inclusive growth.

Source: IMF Data via Statisense
Reporting: Tech and Biz News NG | www.techandbiz.com.ng

NCC Takes Action to Resolve N250 Billion USSD Debt Crisis

NCC Takes Action to Resolve N250 Billion USSD Debt Crisis

 

The Nigerian Communications Commission (NCC) is actively working with the Central Bank of Nigeria (CBN) to resolve the ongoing N250 billion debt owed by Nigerian banks to telecommunications operators for Unstructured Supplementary Service Data (USSD) services. As the sector’s regulatory body, the NCC is committed to ensuring a sustainable and balanced resolution that protects consumers, promotes fair practices, and upholds the integrity of mobile financial services.

The Critical Role of USSD in Financial Services
USSD, a mobile communication system used for essential financial services such as money transfers, balance checks, and bill payments, is a vital tool for millions of Nigerians. However, telecom operators have raised concerns about non-payment by banks for these services, leading to an increasing debt burden that has now reached N250 billion.

The debt issue dates back to 2019 when telecom operators proposed a charge of N4.50 per 20 seconds of USSD usage, to be deducted from the fees banks collect from customers. The banks opposed the charges, citing the high cost of the proposal, which they argued would increase service costs by 450%. This disagreement has led to the current financial dispute.

NCC’s Commitment to Resolving the Issue
In light of the growing tension, the NCC has stepped in as a mediator between the telecom operators and the banking sector. Dr. Ikechukwu Adinde, Director of the NCC’s Consumer Affairs Bureau, emphasized the Commission’s dedication to resolving the crisis in a way that balances the interests of all parties involved, especially consumers.

“The NCC’s priority is to ensure the continuity of essential mobile financial services and to protect the interests of consumers who rely on USSD daily for critical financial transactions,” said Dr. Adinde. “We are committed to working with the CBN and other stakeholders to find an equitable solution that resolves this debt issue and ensures the continued provision of these services without disruption.”

Focus on Transparent and Fair Practices
As part of its regulatory role, the NCC is also taking steps to increase transparency in the telecommunications sector. New regulations will soon require telecom operators to clearly communicate their tariff plans, billing rates, and service terms to customers. This move is designed to enhance consumer trust and ensure a more transparent and predictable service environment.

“We recognize that transparency is crucial in fostering a fair and competitive telecommunications industry. Our goal is to provide clear guidelines that ensure fair pricing, protect consumers, and support sustainable business practices across both the telecom and banking sectors,” Dr. Adinde added.

A Balanced Path Forward

The NCC’s actions align with its long-standing commitment to ensuring that the telecommunications industry operates in the best interests of all stakeholders. By facilitating a collaborative approach with the CBN, the NCC aims to resolve the USSD debt dispute while reinforcing its regulatory oversight to prevent future conflicts.

“We are confident that with the support of all parties involved, we will reach a resolution that addresses the current debt crisis and establishes a more structured framework for USSD services moving forward,” Dr. Adinde concluded.

The NCC continues to engage with relevant stakeholders and is optimistic that the ongoing efforts will lead to a fair resolution that preserves the integrity of Nigeria’s mobile financial services ecosystem.