For decades emerging countries have been steadily increasing their sovereign borrowing. Debt issuance took off with the COVID crisis and should remain at a high level as long as governments are forced to take measures to deal with the drop in demand subsequent to the pandemic.
The pandemic crisis is worldwide, interest rates remain low, global debt has risen sharply, and the issue of emerging countries’ debt is still under debate.
The liquidity crisis tied to the COVID-19 pandemic could turn into a solvency crisis, forcing several countries to restructure their public debt. The evolution of financing tools and the emergence of new creditors require greater international coordination and a reinforcement of the existing structures.
Recent developments in financing show that investors and public issuers are interested by regional bond issuances.
One of the topics under debate concerns how debt cancellation can best be used to get the economy going again and to improve human development indicators.
This issue of the Revue d’économie financière also takes up the 2015 debt crisis in Argentina and the importance of the independence of the central bank in resolving the crisis.