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Poor Nations Face $35 Billion Bill as Debt Restructuring Slips

  • Common Framework has no completed restructurings one year in
  • Countries resuming service payments as suspension plan ends

Slow progress on a plan by the biggest economies to help debt-ridden developing nations restructure what they owe is spurring concern from the International Monetary Fund and World Bank about vulnerabilities as a $35 billion bill comes due and U.S. interest-rate increases loom.

More than a year since the Group of 20 set up the so-called Common Framework to reorganize the debt of countries in danger of default, a lack of coordination and transparency has hampered the process. Chad, Zambia and Ethiopia -- the only nations among about 70 eligible ones that have applied -- remain mired in talks. And Ethiopia had its credit rating cut just for applying, prompting nations like Mauritania to avoid the process.