The Rockefeller Foundation proposes a plan to revive growth in indebted developing countries

The Rockefeller Foundation and its partners today presented an initiative aimed at helping heavily indebted developing countries access new financing to stimulate economic growth, according to the British agency Reuters.

Development experts stated that this new initiative, called the “Growth and Investment Reset,” aims to prevent a debt crisis in a large number of low- and middle-income countries.

This is to be achieved in coordination with the activities of the International Monetary Fund (IMF), the World Bank, official bilateral creditors, and private lenders.

The initiative aims to provide favorable financial resources to countries burdened with high levels of debt and to prevent them from using low-interest multilateral loans to repay debts to bilateral creditors, such as China, the foundation stated.

“Developing countries are facing an unprecedented interest burden that is crowding out necessary investments. Without urgent action, the situation will worsen,” the statement added.

“A wave of cheap external loans taken during the COVID pandemic is coming due, at a time when borrowing costs have risen dramatically,” the Foundation noted.

This proposal comes ahead of the annual meetings of the IMF and the World Bank, which will be held next week in Bangkok and will address numerous challenges facing developing countries.