Debt Relief for Sustainable Recovery in Low-and Middle-Income Countries: Proposal for New Funding Mechanisms to Complement the DSSI
October 8, 2021
Whilst the COVID-19 pandemic continues its successive waves worldwide and amidst the uncertainty about the timing and the effectiveness of the vaccine coupled with virus mutation, continuous lockdowns and social distancing measures, countries and particularly low-income countries (LICs) and lower-middle-income countries (LMICs) will continue borrowing and pushing debt levels to further heights to alleviate the social cost of the pandemic and to jump-start the recovery phase.
The costs will be dire for countries that will have to restructure or default on their sovereign debts. The recovery of these countries must be aligned with the 2030 Agenda for Sustainable Development.