A Good but Incomplete Start to Debt Relief
After initially responding to the pandemic-induced economic crisis with an initiative to postpone developing countries' debt payments, the G20 has now come back to the table to offer a more plausible solution. But the new common framework for restructuring sovereign debt should be merely a first step in a longer process.
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LONDON – A global collapse in economic activity during the COVID-19 pandemic has significantly increased the risk of debt distress in many countries, pushing the poorest ones to the brink. In response, various international organizations have unveiled a number of initiatives to forestall circumstances necessitating between responding adequately to the public-health crisis and servicing existing debts.