News from 2018-11-20 / KfW Research
Low-income country debt: the worry lines are not easing off
Low-income countries (LICs) have experienced significant debt growth in past years, which poses an increasing risk. What is becoming apparent is that the LICs are not sufficiently capable of using their debt for productivity-enhancing investment. The result is insufficient economic progress. As a consequence, debt distress in these countries has risen considerably. The debt sustainability of these countries therefore needs to be anticipated more carefully and adapted debt instruments need to be developed for LICs.
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