Financing and Debt Management for Emerging Market Economies
29. May 2020
Two of the major issues in the economic management of the ongoing COVID-19 crisis are how to guarantee financing for emerging and developing countries, and how to manage their outstanding debts. The magnitude of the challenge is immense: Both the IMF Managing Director and UNCTAD have argued that the world needs $2.5 trillion of financing for these countries. This article suggests that the way forward should be a mix of heterogeneous debt solutions and a major increase of financing from multilateral development banks and, in the case of countries with market access, a return to bond issues in international financial markets.
The Brookings Institution | Financing and Debt Management for Emerging Market Economies