The New-Old Sovereign-Debt Challenge
To help poorer countries at risk of sovereign-debt distress, international policymakers need to promote much greater private-creditor participation in debt reprofiling and restructuring. They should also provide additional financial support that enables these countries’ continued investment in sustainable development.
https://prosyn.org/oF4ZMAS
NEW YORK – One of the COVID-19 pandemic’s many complex legacies will be a high level of public-sector debt in most countries. This reflects governments’ increased spending to tackle the crisis, as well as the collapse of tax revenues as economies imploded in 2020. As a result, many lower- and middle-income countries are at risk of sovereign-debt distress.