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 is urgently needed, they say, and not just for the poorest countries that have signed up to the G20s payment standstill. Middle income countries are likely to face tough choices about debt payments in the medium term.
Yet rational ponderings from renowned academics about debt sustainability dynamics in emerging nations are powerless agains…
Read the full article at: https://www.globalcapital.com/article/b1m0nhz26jl2c4/em-rally-makes-a-mockery-of-debt-relief-calls-for-now
