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CGD Policy Blogs

 

A graph of countries where debt service exceeds new disbursements on official debt

Visualizing the Debt Service Drag on Developing Country Governments

The G7 countries pledged a massive scale-up in support of developing-country financing at their recent summit in the UK. How it will be financed remains an open question. But analyzing trends in recent debt flows by lenders to developing countries, and taking stock of the Debt Service Suspension Initiative (DSSI), can provide some important lessons for the G7’s new ambitions.