Debt Relief and the MDGs
This note links the relevance of debt relief to one of the great challenges of our time: achieving the Millennium Development Goals (MDGs).
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This note links the relevance of debt relief to one of the great challenges of our time: achieving the Millennium Development Goals (MDGs).
Whatever happened to debt relief for the world's poorest countries? It's back.
Low-income countries with high levels of debt face a dilemma when considering new financing. Additional funding is needed to meet key development objectives, but too much new financing in the form of debt can exacerbate debt problems. Countries that borrow too much – even on concessional IDA terms – can quickly find themselves facing rapidly rising debt ratios that could threaten debt sustainability in the future.
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