李月芬：我曾告诫一些非洲国家，大量借款时要小心(15)

Massive currency depreciation has been happening in quite a number of developing countries, which means debt servicing cost has been increasing tremendously. So you see quite a number of developing countries are facing balance of payments problems, and also their fiscal position has been deteriorating quickly. In some countries, for instance Sri Lanka, the foreign exchange reserves has been completely depleted, and drastically reduced for many other countries.
People in developing countries are suffering because of the interest hikes, and poverty has increased. Inflation actually would touch upon the major items, food items that the poor people would have to really consume every day. So it"s a major cause of increasing poverty.
The repercussion, the spillover effect has been widespread and also quite dramatic. I think this is a big challenge for the developing countries, and we see that an increasing number of countries will be facing the problem of default. That is, they will not be able to service their debt and they have to declare bankruptcy at a sovereign level. That will be a global systemic challenge.