Relief for poor nations welcomed, but it creates a ‘ticking time-bomb’

SDRs, repayment holidays are one thing, mounting interest that sucks up their revenue is another, say experts

08 April 2021 - 20:19 By Marc Jones

Debt experts, charity groups and investors welcomed news on Wednesday that the world’s poorest countries will get new IMF funds and Covid-19 debt relief, but they also cautioned that for some it would still only be a Band-Aid solution.

A new $650bn allocation of the IMF’s quasi currency known as Special Drawing Rights (SDRs) will provide more than $20bn in funding, while an extended repayment holiday on loans from rich G20 nations will temporarily save another $7bn...

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