To match Feature PACIFIC-JUSTICE/ REUTERS/Lincoln FeastWELLINGTON, May 18 (Reuters) - Six Pacific countries are at a high risk of debt distress in part due to government spending to respond to the COVID-19 crisis, the World Bank said in a report on Thursday.
Among other countries in the region, Vanuatu is rated at medium risk, while Palau and Nauru’s debt is sustainable, the report noted.
The World Bank last month said that Fiji must also take urgent action to reduce its debt burden.
Stephen Ndegwa, World Bank Country Director for Papua New Guinea & the Pacific Islands, said reducing debt, strengthening revenue and improving the quality of government spending are critical areas for Pacific countries to address.
It also said that Pacific countries should allocate more to social assistance and protection measures.