The COVID-19 pandemic caused a sharp reduction of economic activity in the first months of 2020, which negatively affected the revenues, liquidity, and, potentially, the solvency of many firms. In response to this crisis, the European Central Bank (ECB) announced the Pandemic Emergency Purchase Prog...

Debt suspension clauses (DSCs) are having their moment in the international policy arena spotlight. Also known as “pause clauses” or climate-resilient debt clauses, DSCs are mechanisms that allow a country to temporarily suspend debt repayments for a pre-agreed period (generally 1-2 years) if a nat...

The most recent G20 meeting ended without making any headway on critical global governance crises. Despite Indian Prime Minister Modi’s plea for members “not to allow current tensions to destroy agreements that might be reached on food and energy security, climate change and debt,” differences on th...

Sri Lanka's default on its debt in 2022 caused alarm among investors and development economists alike, and raised questions about the factors underlying the country's economic downfall. In this blog, we examine the reasons for Sri Lanka's default and the challenges that lie ahead.

China’s emergence as the creditor of choice for lower- and middle-income countries priced out of capital markets or deemed too risky by other lenders has delivered a clear development benefit to these countries.

President Biden is scheduled to deliver his second State of the Union address tonight. Historically, these speeches have focused on domestic policy and leading national security issues, yielding limited airtime for international development. But, on occasion, past presidents of both parties have spo...

One in five people on the planet live in countries at risk of debt distress. Yet the leaders and institutions that understand the challenge and could address it are instead virtue signaling and pointing the finger at others who share responsibly for a solution. We need a different approach—one that ...

Developing countries are facing a pair of looming crises in climate change and debt. And while these are distinct crises, they are linked: countries more vulnerable to climate change are also facing higher debt risks.

Not every country at risk of debt distress is at risk of a famine, and vice-versa. But for the handful of countries that are vulnerable to both, the interplay between the two crises could exact a devastating human toll.