For Developing Economies, the Finance Landscape Has Become a Wasteland
Over the past two years, private creditors have been squeezing public-sector borrowers in developing countries, taking out more in interest payments than they are providing in fresh lending. As a result, the world's poorest countries are facing not only a liquidity crunch, but also a growing solvency crisis.
https://prosyn.org/MIVg2xh
WASHINGTON, DC – It was a bold idea, encapsulated in a snappy slogan: “From billions to trillions.” A decade ago, when private capital was sloshing into developing economies, governments and development institutions saw an opportunity to turbocharge progress on poverty reduction and other development goals. “The good news is that, globally, there are ample savings, amounting to $17 trillion, and liquidity is at historical highs,” read a key strategy document of the time.