Private
finance
Debt
Tax
justice
Aid
Financial
architecture
> Blog

blog
Argentina: creditors must take action to stem human impact of debt crisis

Iolanda Fresnillo, Daniel Munevar

14 May 2020 11:38:24

Argentina continues to struggle with recession and a mounting debt crisis. The country has been on selective default for a few months, and is battling to avoid a broader default. It has been trying to find a workable solution both with its private creditors, with bilateral creditors through the Paris Club and with the IMF, by proposing a comprehensive and consistent debt restructuring process. However, this has resulted in little success to date. On top of this already complicated situation, Argentina is now facing the economic consequences of the Covid-19 pandemic. That is why CSOs across the world are writing to the members of the Paris Club backing Argentina's call. “A substantial debt restructuring in Argentina, with fair burden-sharing by all creditors, is imperative in order to address ...

blog
Will donors finally agree on fair rules for reporting debt relief as ODA?

Jan Van de Poel, Nerea Craviotto

14 May 2020 10:52:26

The rules on how debt relief should be counted as Official Development Assistance are currently being negotiated by the Organisation for Economic Co-operation and Development (OECD) Development Assistance Committee (DAC) – under the auspices of its Chair Susanna Moorehead – and the Paris Club, which is an informal group of creditor governments. This important issue has been left unresolved ever since the DAC decided to switch to a grant equivalent system for reporting loans in 2014. According to our information, both parties are set to meet early next week and are aiming to reach an agreement by June this year. This means the next few weeks will be key in making sure the new rules set the best incentives for the provision of much-needed ODA resources to eradicate poverty and tackle inequalities ...

blog
NGO Statement: European Green Deal must strengthen partner countries’ recovery from the COVID-19 crisis

Leia Achampong

11 May 2020 09:25:50

Today, Eurodad, along with 15 other civil society organisations, released a joint statement calling for the European Union to pursue a green recovery that supports all people, communities and the planet.  Countries all over the world have mobilised to react to the COVID-19 pandemic. ‘But for developing countries in the global south, their experiences are compounded by the ongoing climate impacts that they’re also experiencing during this pandemic.  As European countries start transitioning to a post-COVID-19 period, it’s imperative that a green recovery plan is equitable, transparent, inclusive and contributes to a global recovery response that supports developing countries too.  The immediate priority is for the EU to demonstrate solidarity with partner countries in the ...

blog
Is ODA up to the challenges posed by the coronavirus pandemic?

Jan Van de Poel, Nerea Craviotto

30 Apr 2020 09:54:04

On 16 April 2020, the Organisation for Economic Co-operation and Development (OECD) released the preliminary statistics on Official Development Assistance (ODA) for 2019. The figures were published amidst an unprecedented crisis that risks erasing any progress made in achieving the Sustainable Development Goals by 2030. While it is clear that ODA will be an important part of the international community’s response to the coronavirus crisis, this blog assesses whether ODA is up to the job and identifies three key challenges that the international community needs to address as a matter of urgency.A quest for more ODAA first challenge is to scale up the available support for developing countries to help them respond to the coronavirus crisis, as Eurodad has argued in a previous blog, at least ...

blog
G20 debt service suspension: A response not fit for purpose (II)

Daniel Munevar

24 Apr 2020 11:32:01

This second part of our two-part blog series provides an assessment of the G20 Debt Service Suspension Initiative announced last week. Part I analyses the impact of the proposal on fiscal responses to Covid-19. Part II places the initiative in the context of the broader economic costs of the crisis for developing countries.  In the first part of this blog series, we examined the impact of the G20 Debt Service Suspension Initiative (DSSI) on emergency responses by the world’s poorest countries to the Covid-19 pandemic. While the DSSI provides some room to bolster the response to the crisis, it is clearly insufficient. The trifling nature of the initial multilateral response is further exposed once the impact of the crisis on public debts is taken into account. This highlights the ...

blog
G20 debt service suspension: A response not fit for purpose (I)

Daniel Munevar

21 Apr 2020 11:32:36

This blog series of two parts will provide an assessment of the G20 debt service suspension initiative announced last week. Part I analyses the impact of the proposal on fiscal responses to Covid-19. Part II places the initiative in the context of the broader economic costs of the crisis for developing countries.  On 15 April, the G20 announced an agreement to suspend public external debt service for a group of 77 developing countries to help tackle the Covid-19 crisis. The G20 Debt Service Suspension Initiative (DSSI) will involve the postponement of up to US$ 12 billion in payments by the world’s poorest countries to official bilateral creditors until the end of 2020. The initiative does not cover multilateral and external private creditors. In order to benefit from it, countries must ...

blog
Six things you should know about Covid-19 and debt for developing countries

Iolanda Fresnillo, Daniel Munevar

16 Apr 2020 13:46:54

An overwhelming amount of information regarding the impact of and response to Covid-19 has been published over the last month. Through this blog, we hope to provide a guide to understanding the key issues for developing countries.  1. There is so much going on right now. How can I keep track of what is happening?  Don’t worry. At Eurodad have been working on these issues for decades and we feel the same. The Covid-19 crisis is having a profound impact on many aspects of our lives. For countries in the global south, the impact of the crisis is such that we are not yet able to fully comprehend its implications.  Despite this uncertainty, at least three basic facts are clear:  Firstly, the health care systems in most of these countries are vulnerable and lack the required ...

blog
IMF Debt Relief: Implications for developing countries

Daniel Munevar

14 Apr 2020 15:19:14

On 13 April, the IMF announced an initiative to provide debt relief for a selected group of 25 countries. The program deploys resources from the Catastrophe Containment and Relief Trust (CCRT) to cover scheduled IMF repayments from beneficiary countries over the next six months. At a time when developing countries are desperately seeking  emergency financing and require an immediate cancellation over all external debt payments due in 2020, this is a welcome development but more is needed beyond the important symbolism of this measure. As discussed in a previous Eurodad report, it is vital for the IMF to adopt a leadership role and take the initiative by cancelling payments owed to it. By doing so, the IMF can promote an understanding amongst official and private creditors regarding the ...

blog
COVID-19, deuda pública y sistemas de salud en el sur global

Daniel Munevar

06 Apr 2020 16:57:22

COVID-19, deuda pública y sistemas de salud en el sur global El costo humano y económico de la crisis causada por COVID-19 es un claro recordatorio de la fragilidad de nuestra sociedad globalizada. La capacidad de los países para contener la pandemia se define por su capacidad para proporcionar protección efectiva a los más vulnerables. Hasta ahora, cerca del 80 por ciento de los casos confirmados de COVID-19 han sido reportados en Estados Unidos, la Unión Europea y China. La mayoría de estos países tienen sistemas avanzados de atención médica con los recursos necesarios para enfrentar los desafíos que plantea la pandemia. Desafortunadamente, no se puede decir lo mismo de la gran mayoría de los países del sur global. Según la OMS, estos países cuentan con sistemas de salud ...

blog
What is the role of ODA in tackling the corona crisis?

Jan Van de Poel

06 Apr 2020 16:12:17

The world is facing an unprecedented crisis. As COVID-19 spreads  across the globe it threatens to disproportionately hit developing countries. COVID-19 does not only threaten  people in developing countries with a health crisis, it also risks plunging two-thirds of the world’s population living in developing countries outside China into a prolonged situation of deepened economic and social vulnerability and poverty. As international institutions and CSOs are putting forward policy responses to these multiple crises, this blog explores the role of official development assistance to deal with ‘the worst crisis since the 2nd World War’, according to UN Secretary General Antonio Guterres. According to the World Health Organisation, at least half of the world’s 7.6 billion ...