March 2, 2018
Chart of the Week: A New African Debt Crisis?
Debt relief wiped away much of Africa's sovereign debt, but after a decade of growth, debt stocks are rising again. Here's a look at the numbers, and how we got here again.
Views from the Center
August 31, 2016
Is the World Bank Excusing Mugabe’s Human Rights Abuses? Read for Yourself.
The World Bank is supposed to work with poor countries in distress. When it all goes well, the Bank supports reformers with advice and money. Sometimes, however, the Bank prolongs a country’s pain by throwing a lifeline to recalcitrant regimes. The difference between a helping hand and a counterproductive crutch requires the Bank to understand the trends inside a country and how its own actions might affect those dynamics. Often, it’s difficult to discern these subtleties.
July 2, 2010
Liberia’s Debt Relief Party
This week, Liberians celebrated in the streets – faces painted, drums blaring, and dancing with abandon. They’re not rejoicing over some recent triumph by the Liberian soccer team or a local festival. The streets of Monrovia were overflowing because of debt relief. That’s right, debt relief. On Tuesday, Liberia secured nearly $5 billion in irrevocable debt relief from the World Bank, IMF, African Development Bank, and bilateral creditors. It’s a massive sum
January 29, 2010
For Haitians' Sake, Drop the "Drop the Debt"
As I blogged Monday, the Haiti government owes the rest of the world about $1.25 billion. Seems like a lot of money.
January 25, 2010
Suspend Haiti's Debt---And Take Official Lenders beyond Lending
More Fresh Ideas for Haiti
November 24, 2009
Cash for Poor Countries, or Another Round of Subprime Lending?
This is a joint post with Benjamin Leo.
A special new lending facility was announced in July 2009 with the objective of providing up to $17 billion in new loans through 2014 and, to entice cash-strapped borrowers, the lender is waiving interest payments for the first two years. This may sound like dangerous new short-term teaser offers for sub-prime borrowers. But this isn’t coming from Countrywide Financial. It actually is a new IMF facility for low-income countries, including some of heavily indebted poor countries (HIPCs) who are just barely coming out of the last debt crisis.
The stated objectives of the new IMF facility are laudable: to offset the effects of the global economic crisis by boosting international reserves and supporting adjustment policies. And yes, the overall terms are more concessional than past IMF loans. Nonetheless, the net impact on national debt levels may be significant. And it was just four years ago that the IMF committed to cancel roughly $6 billion in bad loans to many of these very same countries.
April 16, 2009
Liberia Cuts its Debt with $1.2 Billion Buy-Back at 97 Percent Discount
In a huge step forward, this week Liberia slashed its foreign debt by buying back $1.2 billion in commercial debt -- about one-quarter of its foreign debt -- from its private foreign creditors, including banks, hedge funds, and other “distressed debt” investment funds.
November 24, 2008
Tim Geithner and Lawrence Summers - Good Picks for the U.S. and the World's Poor
We at CGD warmly welcome president-elect Barack Obama's appointments of Timothy Geithner as Secretary of Treasury and Lawrence Summers to head the National Economic Council. Both are members of the CGD Board of Directors. This is no coincidence.
November 13, 2007
IMF Announces Financing For Liberia's Debt Relief: A Good Start
Good news! The IMF has finally moved forward on Liberian debt relief. Yesterday's IMF announcement that it has agreed on the necessary financing was a strong endorsement by the international community of Liberia's progress under its new government. It took more than a year of pushing and prodding, but Liberia now can formally begin the debt relief process.
July 16, 2007
IMF Announces Process and Profile for New Managing Director--World Bank Looks Stodgy By Comparison
Last Friday the IMF board announced that it would accept nominations to replace Rodrigo de Rato as the next Managing Director until August 31, a first and essential step in opening up the process of selecting the IMF leader. The board also announced the skills and qualities it seeks in the next Managing Director:
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