The strain of corporate debt looms large over the global economy. Months into the pandemic, corporate balance sheets in both advanced economies and emerging markets are more stretched than ever, with aggregate corporate debt standing at historically high levels relative to GDP. At the same time, traditional measures of debt affordability and debt sustainability are deteriorating as the global recession takes hold.
With governments phasing out unprecedented support to business, including through extensive forbearance, we will soon witness a significant spike in corporate insolvencies across the board. This can severely undermine the green and resilient economic recovery the world needs.
Extending Debt-for-Climate (D4C) swaps to the corp…
Read the full article at: https://blogs.worldbank.org/psd/corporate-debt-restructuring-times-covid-19-case-debt-climate-swaps