And so far, nobody has claimed responsibility for what happened in kabul earlier this morning. And the truth is that urban centers, and thats what the taliban said have been largely spared of big attacks. But one of the, it seems like one of the aims of what happened here is this morning was never did it that they knew that it will get a lot of publicity because it was a very, very brazen attack. And it is something that has been making news all across the world. Again. The u. N. Secretary general has warned that yemen is on the verge of a catastrophic famine. I tell you the terraces says millions of lives could be lost if nothing is done. Yemenis are already suffering from 6 years of war. Donald Trumps Campaign has suffered another blow on michigan has backed president elect joe bidens. When there trump is reported to have been meeting the states Republican Leaders to persuade them to appoint electors who support him. Protests have been held in brazil against the killing of a black man outside. A supermarket. Video shows 2 security guards repeatedly hitting a man in the face before his death. Protesters in thailand are demonstrating again to keep up the pressure on the government. There demanding changes to the education system. Rallies have been held since july, calling for a new constitution reforms to the monarchy and that a move all of the prime minister. Canadas largest city is going back into lockdown on monday after rallies in corona virus. Cases, gyms and solids are closing in. Toronto and restaurants will be limited to offering takeaways. Health officials fear daily infections could reach 12 times the current level of social contacts increase during the holiday season. Those are the headlines. The news continues here on aljazeera after counting the cost by the American People have finally folk in america as i slid this off, balance or become more dangerous. The world is looking to with the election behind us. Will the Republican Party dump trump your weekly take on u. S. Politics . And thats the bottom line. Im adrian from again, this is counting the cost on aljazeera a look at the world of business and economics this week. As the cost of the pandemic pile up zambia defaults on its debts as china and private investors wrangle over who should take losses on their loans. And the debt tsunami means that Central Banks are considering the unthinkable negative Interest Rates. But are investors prepared to pay governments for the privilege of lending to brazil is no longer one of the worlds top 10 economies. Many brazilians face a painful financial future. With soaring food prices and house prices. The g. 20 Rich Countries Club struck an historic agreement on restructuring debt for some of the worlds poorest nations. The move goes beyond the current deal to freeze debt repayments until june next year. That is significant because it includes china. Beijing has been reluctant to sign up to any deal that would cancel or restructure debts, which china accounts for 63 percent of overall debt owed to g. 20 nations in 2019. Its not exactly how much money china is owed, but various estimates say the country has given out loans worth 1. 00 trillion to 5 trillion dollars in the past 20 years. And thats a problem. The United States and many western private lenders have been unwilling to discuss restructuring debt for the poorest nations because they dont want to bail out beijing. China has gone as far as classifying state lenders as private institutions to avoid scrutiny. Most of the money has been spent on rolling out its belton Road Initiative to build infrastructure and increase its influence in mostly developing nations. Its law gess has come a huge cost for many of the 138 patients who have signed up to the program. Despite that historic g 20 deal, a number of countries, a close to defaulting on their debts. As the pandemic decimates economies, zambia became the 1st african default of the covert 19 era. It has the backing of many empty debt campaigners who are encouraging more nations to join zambia in threatening default. Zambias problems predate the pandemic. Its africas 2nd biggest cop exporter. And as copper prices tanked, it found it more difficult to meet its payments. Its thought the country has 11000000000. 00 worth of debt. Negotiations have hit a wall because of debts. It has to china. Its thought that zambia owes china about 3000000000 dollars, but china wont offer debt relief unless it gets 200000000. 00 in a river is paid 1st. Private lenders arent willing to give zambia new money, the fear that it will be used to pay off china and not without good reason. Zambia said it may draw down 700000000000. 00 worth of chinese debt. Zambia has also been in talks with the International Monetary fund for a 1300000000. 00 loan. Lets get more on what could be a gathering storm if more countries to fold on their debts from london by skype are joined by Alisa Strobel city economist for Subsaharan Africa at i. H. S. Market. And he said good to have you with us. Our earth to zambia get into such a financial mess. Yes, economic mismanagement and a lack of Fiscal Consolidation over recent years underlines some aspen intell difficulty. Additionally, in a decline, transparency over debt on the chinese lenders, including alleged off balance sheet, chinese loans to state owned a crisis. And the fact that some, if they were step restructuring over i. M. F. And gave him an add to the debt, then some in authorities have been under them to secure an i. M. F. Support Program Since late 2017. That would more concessional financing, leaving told it like sterile duck. Therefore, to increase sharply and also inhibiting the governments ability to secure to agree on short term fiscal imbalance of payments funding from other multilateral institutions such as the African Development bank. What is that theyve been doing with the money that it but its borrowed. There are allegations that the government might have been spending it on winning elections rather than helping the economy. Yes. Well, some parts of the borrowed money went into recurrent expenditure, including salaries. Well, other parts went into Infrastructure Projects including millisecond and 1. 01 trying to 1000000000 u. S. 1. 00 project. However, there were concerns raised over allegations of art if she pushed Price Inflation and some of the Infrastructure Projects. As i mentioned, the list 2nd all are a project. Also there are various direction allegations that support the rhetorical mismanagement of funds. As a result in september 2018, as some donor, foreigners have a suspended their donor 8 support for or the some government bacha it here by in particular the financing of the cash and spare programs as well as the Agricultural Sector where particular negatively impacted by these suspensions. And is that why china is reluctant to offer any debt relief . Well, china, mainland state backed lenders are very unlikely to pursue full scale in depth relief, an up or a debt for structuring in stat. This is because Debt Forgiveness can set an undesirable example to other dept or seek more favorable treatment on chinese loans. Especially if this will be politically currently difficult to justify given china mainers economy beginning to recover from the impact of the covert 19 virus outbreak. In stat, china, mainland, likely to provide depth relief on a case by case basis, which may include, for instance, extending the payment period. A temporary waiving of interest payments. If lending is not already on concessional terms, offering for the credit to default or marginally forgiving debt by either reducing project scope or depth to act or to agreements for some of the commodity rich countries in particular. Like and go lower. You mention i go to other any other countries in a similar situation to zambia . How many more zambias are there out there . Yes, we see for verity of countries next year to see the Debt Service Burden to build up sharply such as force of vatican amid and kenya, kenya as government as refusal to access relief under the g 20 debts of a Suspension Initiative heightens fiscal risks beyond their receiving of the emergency code 19 funding for the majority of african countries. However, debt initiatives by the g 20 and the i. M. F. , the currently have run 34 countries, african countries that have received emergency funding by the i. M. F. These packages have east external liquidity pressure somewhat. And the extension of these initiatives lowers nonpayment risk somewhat currently until mid next year. Are other concerns that be a could be heading the what the same way as in bob way . Yes. Yes. Because we do not see any near term improvement in this regard. Some enough, the artist will have to prove to private lenders as well as the i am math, that Government Debt will be placed on a more sustainable half and a show of policy credibility in order to unlock emergency funding. That is so necessary. However, because of the Upcoming Elections next year, that would and will fire spending. We expect i. M. F. And gauge meant for the unlucky prior to that. Also, the i. M. F. Warned that some guess replacement of its Central Bank Governor last august led to an increase in the political control of a Monetary Policy resulting in a weakening of some b. S. Policy credibility. And thus delaying discussions with the i. M. F. For the basis for really good to talk to your county because many thanks indeed for being with us. My good question. Thank you. The coronavirus pandemic has ravaged brazils economy, which is predicted to contract by about 5 percent this year. Economic Analysis Shows the south american nation is no longer ranked among the worlds top 10 economies. Many brazilians face a painful financial future with soaring food and house prices now is a serious market. Yannick hiv reports now from rio. d d d its tea time in this slum in rio de janeiro. C c baker sounds his horn to announce fresh buns for sale, but they cost 50 percent more than in january. Prices in general have become absurdly expensive since the beginning of the coronavirus pandemic unemployment is at a 14 percent record high. And many here are surviving on the government emergency aid, which will only last until the end of the year. For brazil, spore the future looks bleak. But investors are also worried. The country is no longer part of the worlds top 10 economies. Brazilians used to boast the 9th largest g. D. P. Now they ranked 12 on the list. According to a report based on data from the International Monetary fund, brazils productivity has been declining since 2015, with the pandemic, the economy will shrink an additional 5 percent. Besides that Political Uncertainty has helped the body of the brazilian reale make it one of the worlds most worst performing currencies. A weak currency favors exports, but the Silver Lining is that double edged sword. With less food being sold on the domestic market, prices have gone up. Most brazilians, like a shooting up at the, are not interested in the countrys international rankings. Theyre worried that staple foods like rice and black beans are 20 percent more expensive. Its not only fuel prices that went up Construction Material is also more expensive. These rigs, for example, cost 30 percent more than before the pandemic. The silver lost his job as a truck driver and moved his belongings from an apartment or neighborhood to a shack. And uses my palate to have a roof over my head in this movie. Garden of economy minister paulo ganders says brazil, bro, once the pandemic is over and he can finally implement market friendly reforms. But for most here, what matters now is putting food on the table. Economic recovery promised by the government still sounds like a long, hard, uphill battle money and i kept, ill just sirrah, rio de janeiro. Extraordinary times call for extraordinary measures south of the financial crisis in 2008, Central Banks poured trillions of dollars into buying up Government Debts to make sure the cost of borrowing didnt get out of hand. Quantitative easing also helped grease the financial infrastructure, making sure that banks could continue to learn money to businesses. Central banks are very much at the limit of what they can do to keep economies motoring, but there is a new tool that has and is about to be deployed. Negative Interest Rates, simply put, that would mean investors would pay the government to hold bombs. Consumers may have to pay banks to hold their money, and borrowers pay less back on the mortgages that they have. The bank of england which separates the north point, one percent could be the next to introduce negative rates. Ok, lets bring in our regular contributor bill. Ill have fees, chief executive of the macro highest bilawal. What are negative Interest Rates . And whats got us to the point that were thinking about using such unconventional tools. Now thats a very good, good question. I mean, negative rates really does sound like were in some kind of fantasy world. Thats essentially where when somebody takes out a loan rather than paying interest, they receive interest. And so this is something Central Banks have started to engage in of the last 45 years. Why as an investor, what would i, would i pay a bank for their, for their debt . And why as a saver what i, what i pay a bank to hold it. Now thats a very good question and i think theres a few answers too to that question. You know, one is theres still a convenience factor whereby the alternative is to hold your, your money in cash, which would really then require you to store the money in your house or under the mattress or in a safe or Something Like that. And this is not just going to vigils, but this also applies to companies as well. Companies would have to store all of their cash in a physical location. And that, you know, would be quite onerous than that there would be costs associated with that. So the thinking is that theres a level of. d interest that somebody would be willing to pay for a bank to hold their their money. And so in that way, there is scope for negative rates simply to be a charge for holding your money. Now if the negative rates are too negative, then there would be much more often move for people to store cash themselves physically in some way. But at the moment the rates, while they are negative, they arent sufficiently negs. If the people to make that switch they have been used before, its, weve been in particular has made as it has it helped economies where its been used in the press. The problem here is that many of the countries that did introduce negative rates like sweden and euro zone, they also introduced lots of other measures that the same time as well. So for example, these countries in gauged in quantitative easing, which meant that the governments also started to buy government bonds, which push down long term Interest Rates in those countries and push down Mortgage Rates those countries. So at one level, its hard to disentangle the 2 in general, what you can say is that after these countries did introduce negative rates, you did see these economies start to improve economically, their growth did pick up. However, inflation, which is the thing that the Central Banks really wanted to increase didnt really increase that much at all. So it does seem like after 34 years of Central Banks doing this, you know, there is some reluctance to push this too much further. It seems like most Central Banks now have decided not to really go down the route of pushing rates even more negative. What about wealth inequality just does it, does it encourage households to take on on more debt that they cant afford . Yet there is a real possibility that that could happen. The, there are a couple of different issues here. One is that if you do have negative rates, people are more reluctant to put their money into savings accounts. So instead they may start to save in more risky investments, so they may go into equities or high yielding corporate bonds. So there is that possibility. But then the other side is also that, you know, are these negative rates passed on to households for them to be able to borrow and make to raise themselves . And thats less clear what we have seen is that the negative rates and also the quantitative easing have pushed down Interest Rates in general, which is then had allowed people to get say, for example, lower Mortgage Rates. Yes. And through lower Mortgage Rates, people have been buying houses a lot more. So in that sense, there has been this increase in asset prices and not everybody owns a house. It tends to be, you know, rich people that own houses and able to buy it with ease. And so you are seeing there is this inequality that has been building since we have seen the introduction of next rates bill, im going to completely change the subject. Now, a massive trading block is coming into force covering a 3rd of the worlds population and a 3rd of the worlds economy. Do you think that the u. S. Is going to counter chinas influence in this new trade pact with its own Trans Pacific trading pact . I think they will, i mean, its been quite evident that you know, under the trumpet ministration the u. S. Started to wit