Covid-19 Crisis: how should the G20 support heavily indebted low-income countries?

Berensmann, Kathrin / Abebe Shimeles / Njuguna Ndung'u
External Publications (2020)

in: T20 Saudi Arabia, Policy Brief, Online

As low-income countries (LICs) need assistance to manage the effects of the COVID-19 crisis, the G20 can play an important role in providing short-term liquidity with a suspension of debt service payments and debt relief. However, debt relief should be bound to reforms, and LICs bear part of the responsibility for coping with the crisis. To prevent a debt crisis in the long term, the G20 could implement measures to promote responsible lending and borrowing among LICs. Two instruments are particularly important: (i) guidelines for responsible lending and borrowing, and (ii) effective debt management.

 

About the author

Berensmann

Further experts

Dafe, Florence

Social Scientist 

Gudibande, Rohan

Economist 

Hilbrich, Sören

Economy 

Laudage, Sabine

Economy 

Schiller, Armin von

Political Scientist 

Sommer, Christoph

Economist 

Volz, Ulrich

Economist