Policy paper on “Debt Relief for Sustainable Recovery in Low and Middle Income Countries” published by the T20
We are happy to announce that the policy brief “Debt Relief for Sustainable Recovery in Low-and Middle-Income Countries: Proposal for New Funding Mechanisms to Complement the DSSI” has been published by the Task Force 5: 2030 Agenda and Development Cooperation, of the T20.
The policy brief has been co-authored by Prof. Rym Ayadi – Professor at The Bayes Business School and President of EMEA, Sameera Al Tuwaijri, World Bank, and Basma Maziad Al-Tuwaijri, ASBAR
The paper proposes a public-private financing fund/plan, as part of global economic recovery plan post-COVID-19, fully aligned with the 2030 Agenda, to complement the Debt Service Suspension Initiative (DSSI) that should be extended to LICs and LMICs. This mechanism can be used to restructure the existing piles of sovereign debt and interest and to finance a sustainable recovery.
The mechanism would reduce uncertainty, economic hardship and sovereign debt opaqueness. Further, it would facilitate private-sector involvement in large restructurings and participation in coordinated debt relief and post-COVID-19 recovery efforts aligned with the 2030 Agenda, while fully committing to sovereign debt transparency and monitoring and placing these countries in a post-COVID-19 recovery and sustainable path for development.
The Think 20 (T20) is an engagement group comprised of think tanks whose primary challenge is to add value to the G20 process with evidence-based public policy proposals.