Even during a global pandemic, debt relief should not be granted across the board – D+C Development and Cooperation

Low-income countries require support to cope with the Covid-19 pandemic. The international community has responded with intensified lending, debt suspension and even calls for debt cancellation. Money, however, is not the solution. Decision-makers must pay more attention to the quality of debt. It is necessary to learn lessons from past debt-relief efforts and address systemic weaknesses. Otherwise, countries will remain unable to manage their debt burdens and stay stuck in poverty traps.

The rising indebtedness of low-income countries was until recently …