hsieh2_ERIC BARADATAFP via Getty Images_worldbankbuildinglogo Eric Baradat/AFP via Getty Images

The Necessity of a Global Debt Standstill that Works

G20 governments recently agreed to suspend bilateral official loan repayments from 76 of the world’s poorest countries until the end of 2020. But, to enable emerging and developing economies to withstand the economic shock of COVID-19, the debt standstill must also include all private creditors.

LONDON/NEW YORK/GENEVA – Faced with an unprecedented economic crisis due to the COVID-19 pandemic, policymakers in rich countries have adopted a “whatever it takes” approach to save their economies from meltdown. But, confronted by an even worse crisis in the rest of the world, the same policymakers have echoed US President Herbert Hoover’s administration at the onset of the Great Depression, essentially saying that nothing more can be done. The result is trillion-dollar rescue packages for the advanced economies and crumbs for everyone else.