The pandemic has propelled debt distress to the forefront of the policy agenda. A series of debt defaults in developing countries has occurred in 2020. 2021 could see a lot more defaults as more low- and middle-income countries are running out of fiscal and monetary capacity while they still confront the health and economic challenges from the pandemic. These countries need more funding to fight the health crisis they face, more investment, and more infrastructure financing to combat climate change. Yet, debt sustainability issues represent a barrier to the flow of new financing toward value-creating investments.
The international community, the World Bank, the International Monetary Fund, and also regional development banks (RDBs), ha…
Read the full article at: https://www.brookings.edu/blog/future-development/2021/03/23/to-recover-from-covid-19-support-regional-development-banks/
