10 Heavily Indebted Poor Countries

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6. United Republic of Tanzania

External Debt Stocks: $28.49 billion 

GNI Per Capita: $3040

Below $2.15 Poverty Rate: 49.9%

Composite Ranking: 6

Tanzania’s significant debt burden partly stems from its ambitious infrastructure and development projects, crucial for long-term growth. For instance, the Deutsche Bank AG has recently announced to grant a loan of $330M to Tanzania for its infrastructure development projects. These initiatives, however, necessitate substantial capital, often sourced through external borrowing. The returns on these investments materialize over time, whereas debt repayments exert immediate pressure on the national budget.

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