The US Federal Reserves whatever-it-takes approach to stabilising markets has had an unintended victim: serious discussions about debt relief in the emerging markets. As eye-wateringly high EM debt burdens are exacerbated by the economic effects of Covid-19, several high profile economists are frantically penning jointly-authored articles warning of an unprecedented debt crisis. Coordinated debt relief…
Roughly one in three Americans have delinquent debt according to recent data fromTheUrban Institute. At 16%, medical debt makes up the highest percentage of debt delinquency, but consumers also default on student loans, auto loans and credit card debt. If someone’s debt is so large that making payments becomes unmanageable (or if paying off the…
The head of the International Monetary Fund called on private creditors to join the Group of 20 in providing debt relief for the world’s poorest nations, saying that the alternative to suspension and restructuring is defaults. A debt-service suspension would provide time for restructuring debt on a case-by-case basis in countries where debt sustainability needs…
Leslie Tayne, 48, remembers being in her early 20s and unable to pay her private and federal student loans from law school. Her first job out of law school only paid $28,000 a year, and she was unable to afford both her minimum loan payments and her basic living expenses each month. Tayne put her…
An extra 37.8 million support package will be available to debt advice providers this year (20-21) so they can continue to provide essential services to help more people who are struggling with their finances due to Coronavirus, minsters have announced. The Money and Pensions Service (MaPS), will oversee the allocation of the funds, including to…
China’s Commerce Minister Zhong Shan attends a news conference at the State Council Information Office, following the outbreak of the coronavirus disease (COVID-19), in Beijing, China, May 18, 2020. REUTERS/Thomas Peter As developing countries confronted the daunting challenges of the COVID-19 pandemic and the ensuing global economic downturn in April, the international community mobilized support…
China has suspended debt repayments for 77 developing countries and regions as part of the G-20 debt relief initiative to help impoverished countries weather economic difficulties amid the coronavirus pandemic, a senior Chinese diplomat said on Sunday. Chinese Vice Foreign Minister Ma Zhaoxu announced the measure during a press conference in Beijing, where the State…
Last month, the U.S. House of Representatives passed the HEROES Act, a $3-trillion stimulus bill, that would include additional relief for those with student loan debt. But its unlikely to pass the Senate in its current form. Several Senate Republicans have publicly stated they wont support the legislation, including Senate Majority Leader Mitch McConnell (R-Ky).…
Group of Seven finance ministers on Wednesday said a debt relief initiative for the world’s poorest countries could be extended beyond the end of the year to help deal with the economic fallout from the coronavirus pandemic. In a lengthy joint statement, the G7 finance ministers urged all official creditors to join the initiative, called…
IT IS ALMOST a law of nature. Just as the female praying mantis eats her mate after copulation, so too can borrowers and lenders fall swiftly out of love. One minute they are sweetly wooing each other to consummate a deal. Then, the moment it is done, they are at each others throats. So it…