The financial response to the Covid-19 crisis has driven debt building at an unprecedented speed, which has increased the risk of debt distress and the odds of a new debt crisis cycle. Emerging markets and developing economies are most at risk.
In this abstract, Professor Rodrigo Olivares-Caminal and Professor Paola Subacchi discuss ex-post intervention in debt crises, preventative measures that assess whether there is a real need to incur new debt in the first place, and the need to shift focus to ex-ante measures such as greater transparency and proper debt management.
The abstract was prepared for publication at the L’Observateur des Nations Unies - Volume 53 (2022-2) - Sovereign Debts and Other Topical International Issues.
Read the abstract: Preventing Debt Crises [PDF 197KB].