Reprieve and Mercy: Debt Relief for the Developing World during Coronavirus

CASS Working Papers on Economics & National Affairs 2021

11 Pages Posted: 15 Jan 2021

See all articles by Usman W. Chohan

Usman W. Chohan

UNSW Business School; Critical Blockchain Research Initiative (CBRI); International Association of Hyperpolyglots (HYPIA); Centre for Aerospace & Security Studies (CASS)

Date Written: January 13, 2021

Abstract

This paper seeks to highlight key issues pertaining to debt relief and moratoria under the Debt Service Suspension Initiative (DSSI), including the importance of debt relief under public resource constraints in the developing world, the difficult trade-offs of capital markets access and accruing interest payments, the need for prolonging moratoria, and the disinterest of private creditors in the rehabilitation of third world economies. The findings suggest that, while international cooperation on debt relief is necessary during the pandemic, the distorted motives of private power make the rescue of developing world a more difficult proposition.

Keywords: debt, macroeconomics, coronavirus, DSSI, emerging markets, HIPC, sovereign debt

Suggested Citation

Chohan, Usman W., Reprieve and Mercy: Debt Relief for the Developing World during Coronavirus (January 13, 2021). CASS Working Papers on Economics & National Affairs 2021 , Available at SSRN: https://ssrn.com/abstract=3765038 or http://dx.doi.org/10.2139/ssrn.3765038

Usman W. Chohan (Contact Author)

UNSW Business School ( email )

UNSW Business School
High St
Sydney, NSW 2052
Australia

Critical Blockchain Research Initiative (CBRI) ( email )

International Association of Hyperpolyglots (HYPIA) ( email )

HYPIA
www.polyglotassociation.org
Montreal, Quebec
Canada

Centre for Aerospace & Security Studies (CASS) ( email )

Islamabad
Pakistan

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