IMF gives glimmer of hope to most indebted countries

Kristalina Georgieva, David Malpass, World Bank, IMF, multilateral, development banks, Washington, LatAm
By Oliver West
09 Apr 2020

With emerging markets across the globe facing an overwhelming liquidity squeeze, the IMF said on Thursday that it would “look for solutions that can unlock critical financing” in countries where the unsustainability of debt prevented the fund from lending, potentially increasing funding options for the most stressed of countries.

As reported in this week’s GlobalCapital, the IMF — which as of Thursday has received calls for emerging financing from over 90 countries — faces a major dilemma deciding whether a country’s debt is sustainable. 

Debt sustainability is a key requirement to receive IMF funding, meaning bondholders are often required to ...

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