LONDON (Reuters) – Fears of credit rating downgrades will deter the worlds poorest countries from taking advantage of debt relief being offered under the G20 common framework, World Bank chief economist Carmen Reinhart said.
In November, the G20 group of major economies launched a framework designed to streamline a process to help countries defer or negotiate down their debt as part of a wider relief programme.
Ethiopias application in January to the programme – which foresees private creditor participation – prompted Fitch and S&P to slash its sovereign rating.
Countries will weigh that in… especially those countries which are still hoping to access private capital, to tap capital markets, Reinhart said in an interview. The prospect …
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