LONDON, April 6 (Reuters) – Up to half a trillion dollars in debt needs to be written off to help developing nations at greatest risk of default return to sounder fiscal footing and meet climate and development goals, according to a Boston University report released on Thursday.
The haircuts on debt owed to public and private creditors by 61 of the nations that are already in or are at most risk of debt distress are essential to avoid “cascading defaults,” according to calculations from the Boston University Global Development Policy Center and the Debt Relief for a Green and Inclusive Recovery (DRGR) Project.
“Without ambitious debt relief, many of the poorest countries don’t have a chance,” said Kevin P. Gallagher, DRGR project co-chair…
Read the full article at: https://www.reuters.com/business/finance/half-trillion-debt-haircuts-essential-sustainability-study-2023-04-06/