Institutions, creditors and lobby groups tout policies to relieve pandemic’s fiscal strain
Global institutions, creditors and lobby groups are scrambling to come up with ways of tackling what many fear will be a wave of sovereign debt crises in emerging economies in the coming year.
The economic and financial consequences of the pandemic threaten to tip dozens of nations into a fiscal crisis and to leave many others weighed down with debt and struggling to grow.
These countries need trillions of dollars of additional public spending to help them recover from the crisis, according to the IMF, which has warned that their national resources will fall far short.
Kristalina Georgieva, the IMF’s managing director, warned this month that about half of low income countries were already in high debt distress.
“We know we must act quickly to restructure their debts . . . so there is no spillover to the rest of the world,” she said.