Debt levels have surged in EMDEs
The COVID-19 pandemic has triggered a steep increase in debt, particularly in EMDEs. This comes on top of a rapid debt increase since 2010.
Unprecedented fiscal stimulus means debt risks have risen.
What goes down will eventually come up
More debt defaults and debt distress are possible
As debt becomes more complex and less transparent, resolution will become trickier
The share of non-concessional debt in EMDEs has risen as the importance of non-Paris Club lenders has increased, potentially complicating debt resolution if needed.
Need data for further research and analysis
Certainly this pandemic will have grave impact on short term financial and economic growth, especially on developing economies. Governments should take advantage and redefine their priorities in the areas of allocation of limited resources and dwell more on digitization, improved health care and good governance.