Chris Infotainment

Overview of the New Leap Fund The government has launched a new initiative known as the “New Leap Fund,” which is designed to address long-term delinquent loans by purchasing and eliminating them from small business owners and vulnerable groups. This program is part of President Lee Jae-myung’s commitment to reduce the burden of debts carried by those in need. As a specialized institution, the New Leap Fund operates as a "bad bank," focusing on acquiring and resolving non-performing assets. Who Qualifies for Full Debt Forgiveness? Individuals or sole proprietors with debts of up to 50 million Korean won who have been delinquent for seven years or more and lack the ability to repay are eligible for full debt forgiveness. A total of 1.13 million people, with combined debts amounting to 16.4 trillion Korean won, fall into this category. Starting this month, the New Leap Fund will begin purchasing delinquent loans from financial institutions to forgive these debts. To qualif...

The Paradox of Africa’s Debt Crisis Africa is facing a growing debt crisis that highlights a troubling contradiction: the continent is rich in natural resources yet burdened by increasing liabilities, infrastructure gaps, persistent poverty, and weak institutions. Countries like Ghana and Nigeria exemplify this trend, with Nigeria’s liabilities consuming 75% of its revenue and external borrowing reaching $24.14 billion. This pattern of borrowing without transformation is evident across many African nations. In contrast, Rwanda has demonstrated a more strategic approach to debt, drawing inspiration from Asian success stories such as South Korea, Singapore, and China. These countries have shown that disciplined investment can turn liabilities into engines of growth. Rwanda's debt-to-GDP ratio increased from 20% in 2010 to over 80% in 2025, which led to a Fitch downgrade. However, the country has used its borrowings to invest in infrastructure, health, and technology, supported by l...

A Global Call to Action on Debt and Development Following a significant moment in the Fourth International Conference on Financing for Development, there is a growing consensus among governments, international financial institutions, and civil-society organisations. They are preparing for action ahead of the United Nations General Assembly (UNGA) in September. This comes after recent reports, including Healthy Debt on a Healthy Planet , the Jubilee Report , and the Report of the UN Secretary-General's Expert Group on Debt , have highlighted the severity and urgency of the intertwined debt and development crises. In 2024, developing countries paid US$25 billion more to external creditors than they received in new disbursements. This means that 3.4 billion people—more than 40% of the world’s population—live in countries that spend more on interest payments than on health or education. The situation has been exacerbated by the global financial system, which is not designed to meet t...