Relief for poor nations welcomed, but it creates a ‘ticking ...


Relief for poor nations welcomed, but it creates a ‘ticking time-bomb’

SDRs, repayment holidays are one thing, mounting interest that sucks up their revenue is another, say experts

Marc Jones

Debt experts, charity groups and investors welcomed news on Wednesday that the world’s poorest countries will get new IMF funds and Covid-19 debt relief, but they also cautioned that for some it would still only be a Band-Aid solution.

A new $650bn allocation of the IMF’s quasi currency known as Special Drawing Rights (SDRs) will provide more than $20bn in funding, while an extended repayment holiday on loans from rich G20 nations will temporarily save another $7bn.

The $20bn share of the SDR increase alone is more than all the emergency money the IMF provided to Africa last year and, in relative terms, those under the most serious stress will receive the biggest benefit...

This article is free to read if you register or sign in.

Sunday Times Daily

If you have already registered or subscribed, please sign in to continue.

Questions or problems?
Email or call 0860 52 52 00.

You have reached the end of the Edition.

Previous Article

Scientists all at sea in bid to save ocean meadows that could save us

By Alessandra Prentice and Christophe Van Der Perre
4 min read