In the aftermath of the global financial crisis (2008–2009), the external financing needs of Latin America and the Caribbean increased significantly, reflecting a process of external debt accumulation in all developing regions, exacerbated by the impacts of COVID-19. The region is now the most indebted in the developing world, with a debt profile that makes it highly vulnerable to changes in international lending conditions and to perceptions of risk. This has placed a major constraint on government responses to the COVID-19 emergency and undermines their capacity to build forward better. This document considers two proposals to address these challenges: (i) expand and redistribute liquidity from developed to developing countries through innovative uses of SDRs; and (ii) expand the set of innovative instruments to increase debt repayment capacity and avoid over-indebtedness.
Serie monográfica que reúne un conjunto de documentos resultantes de los estudios e investigaciones de la CEPAL.
A series of monographs bringing together documents arising from ECLAC studies and research.
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In the aftermath of the global financial crisis (2008–2009), the external financing needs of Latin America and the Caribbean increased significantly, reflecting a process of external debt accumulation in all developing regions, exacerbated by the impacts of COVID-19. The region is now the most indebted in the developing world, with a debt profile that makes it highly vulnerable to changes in international lending conditions and to perceptions of risk. This has placed a major constraint on government responses to the COVID-19 emergency and undermines their capacity to build forward better. This document considers two proposals to address these challenges: (i) expand and redistribute liquidity from developed to developing countries through innovative uses of SDRs; and (ii) expand the set of innovative instruments to increase debt repayment capacity and avoid over-indebtedness.