Local Currency Lending is a Double Win: More Sustainability and Lower Financing Costs – April | 2022

Increasing debt management capacity for sovereigns will be a most crucial development challenge for decades to come. The COVID-19 economic shutdown caused a massive increase in debt and currency risk held by governments (Sikarwar, 2021). A recent study reported that 68 sovereigns received credit downgrades since March 2020 (OECD). Moreover, nations need further financing for SDGs and climate pledges.

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