| Autor: |
Steinhauser, Gabriele (AUTHOR), Dulaney, Chelsey (AUTHOR) |
| Předmět: |
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| Zdroj: |
Wall Street Journal - Online Edition. 12/14/2023, pN.PAG-N.PAG. 1p. |
| Abstrakt: |
A plan to prevent debt crises in developing countries by encouraging them to borrow in their own currencies has backfired. Instead of using local-currency bonds to phase down foreign-currency borrowing, cash-strapped governments have relied on them to cover budget shortfalls, leading to high interest payments that drain their balance sheets. This has caused economic crises in countries like Sri Lanka, Ghana, and Pakistan. The high cost of local-currency borrowings has also complicated debt relief efforts for poor countries and created disagreement between the World Bank and the International Monetary Fund. Despite the challenges, some economists argue that domestic-debt markets have proven to be a resilient funding source for larger economies. [Extracted from the article] |
| Databáze: |
Regional Business News |
| Externí odkaz: |
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