- Many developing countries face huge debts from the COVID-19 pandemic.
- Market analysts now suggest that almost 40% of emerging- and frontier-market sovereign external debt could be at risk of default in the next year.
- An IMF endorsed ‘debt for nature swaps’ initiative could help countries tackle debt and improve sustainability together.
A global debt crisis is looming. Even before COVID-19 swept the world, the International Monetary Fund had issued a warning about developing countries public debt burdens, noting that half of all lower-income countries were at high risk of or already in debt distress. As the economic crisis worsens, these countries are experiencing steep output contractions at the same time that COVID-19 relief and…
Read the full article at: https://www.weforum.org/agenda/2020/08/global-debt-for-climate-swaps
