• Eurodad analysis shows Covid-19 ‘recovery packages’ could force tax increases and spending cuts in 80 developing countries by 2023, threatening achievement of SDGs.
• 59 countries have fiscal consolidation plans over next three years that are almost five times larger than Covid-19 response packages implemented in 2020

#Covid-19 #UN #FinCEN #Tax #DebtSustainability #OECD #DAC #UNFCCC #Unga

The pandemic has had a devastating impact on the living conditions of the population of Zambia. Debt relief with private creditor participation is required now to ensure the country can boost its Covid-19 response and support a sustainable recovery.

The indicators of a severe debt crisis were already present in Pakistan long before the Covid-19 crisis hit. Coordinated efforts by CSOs all round the world are needed to ensure that countries like Pakistan are not left alone dealing with its impact.

A new Eurodad report has identified an available IMF mechanism to impose debt standstills: Article VIII, Section 2 (b) of the IMF Articles of Agreement. The article in question allows the IMF to impose a debt standstill through the temporary suspension of enforceability of debt contracts in domestic courts of more than 189 IMF member countries, including the US and the UK.

Read the report in English, French, Spanish and Portuguese.

Today, the UN Secretary General called for a sovereign debt restructuring mechanism to be established as part of the longer term response to the Covid-19 crisis and its economic impacts. The call is accompanied by a new report from UNCTAD - the main UN body dealing with trade, investment and development issues - calling for a global authority to oversee debt restructurings.

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.

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. 

La crisis de Covid-19 tiene el potencial de devastar el sustento y las vidas de los 1.200 millones de personas en 69 Economías de Bajos Ingresos cubiertos por este informe. 

Evaluación de costos de una moratoria de la deuda para enfrentar la crisis de Covid-19