RIO DE JANEIRO, BRAZIL - According to the UN, 42 economies that borrowed in capital markets have suffered sovereign downgrades since the beginning of the pandemic, being six developed countries, 27 emerging economies, and nine underdeveloped countries. In the last year alone, according to António Guterres, secretary-general, six countries have defaulted on their foreign debts: Argentina, Belize, Ecuador, Lebanon, Suriname, and Zambia.
The UN issues a warning: "such downgrades increase borrowing costs, particularly for developing countries, which may, in turn, increase the risk of more nations having unsustainable debts. The risk becomes even greater if the pandemic lasts longer . . .