7 August
Government debt is rising across the world as countries continue to borrow to release funds for economic recovery amid the pandemic.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The rising debt could lead to a global crisis plagued by unemployment, fuel instability and violence.
Tony Addison, professor of economics at University of Copenhagen, shared an article on the ways in which a global debt crisis can be prevented.
It is estimated more than 100 low to middle income countries will have to pay $130bn in debt service in 2020, out of which approximately half of it will need to be paid to private creditors.
An alternative to avoid such a debt crisis is voluntary sovereign debt buybacks, which can help in reducing debt burdens by obtaining discounts on the face value of sovereign bonds.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataA multilateral buyback facility managed by the International Monetary Fund (IMF) can be implemented to manage funds from a global consortium of countries.
To ensure debt reduction, the IMF can conduct auctions and buyback certain amounts of bonds.
