Private sector makes step on rocky road to EM debt relief

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By Oliver West, Ross Lancaster
28 May 2020

Private sector involvement in suspending debt servicing for the world's poorest countries to alleviate the impact of the coronavirus pandemic progressed this week, with the Institute of International Finance (IIF) publishing guidelines for such an initiative. But countries face a long and tortuous path to reach tangible relief, write Ross Lancaster and Oliver West.

Since the Covid-19 crisis began, emerging markets investors have moved from entertaining the idea of debt relief to approaching it with greater caution.

At the beginning of the crisis, the IIF, a trade association for financial institutions, enthusiastically joined official sector lenders in recognising the need for the world’s ...

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