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What to do about the coming debt crisis in developing countries

What to do about the coming debt crisis in developing countries

Emerging markets and developing countries have about $11 trillion in external debt and about $3.9 trillion in debt service due in 2020. Of this, about $3.5 trillion is for principal repayments. Around $1 trillion is debt service due on medium- and long-term (MLT) debt, while the remainder is short-term debt, much of which is normal trade finance.For the poorest countries (all those eligible for support from the or IDA), 2020 MLT debt service is about $36 billion, divided in roughly equal proportions between multilateral, bilateral (mostly non-Paris Club), and commercial creditors.All...

April 13, 2020
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