No more loans? How Creditors Torpedo Debt Relief Initiatives
Jubilee Germany (Erlassjahr.de) has published a discussion paper on the market-access narrative, available in English and German. The debt relief initiatives established in the context of the COVID-19 crisis threaten to fail because poorer countries are reluctant to participate. One reason for this is the claim made primarily by private creditors that the beneficiaries of debt relief exclude themselves long-term from the capital market. However, more important than any short-term downgrade of participating countries is the question whether the debt relief goes far enough to facilitate an economic restart.
As we are all aware of, DSSI-eligible developing countries are reluctant to participate in the G20 debt relief initiatives and also non-eligible critically indebted countries rather continue paying instead of seeking debt renegotiations. One reason for this is the claim made primarily by private creditors that the beneficiaries of debt relief exclude themselves long-term from the capital market. Jubilee Germany has published a discussion paper on the market-access narrative, which is now available in English: https://erlassjahr.de/en/news/new-analysis-no-more-loans-how-creditors-torpedo-debt-relief-initiatives/
Contact:
Kristina Rehbein
Geschäftsführung und politische Koordination
erlassjahr.de - Entwicklung braucht Entschuldung e.V.
40477 Düsseldorf
Tel: +49 (0)211/4693-218
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http://www.erlassjahr.de