Developing Countries’ Never-Ending Debt Crisis
Giving countries in debt distress just enough relief to stay afloat leaves them at risk in the event of a further shock. That is a major lesson of past debt crises that creditors ought to keep in mind today, though there is little evidence that they are.
PARIS – The debt crisis in low-income countries continues to fester. Meanwhile, the international policy community seems to be losing traction on the problem. Can it recover its grip, or has a developing-country debt disaster become inevitable?