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Many low-income countries (LICs), particularly in sub-Saharan Africa, face the challenge of repaying loans in foreign currencies. With most of their debt in dollars or euros, these nations are in a difficult position: when their currency weakens, their debt burden goes up. This phenomenon—relying on...

As the replenishment process for IDA, the arm of the World Bank that provides concessional lending, is in full steam, the stakes are unsurprisingly high for Africa. This is partly because IDA provides grants and low-cost financing to 75 low-income countries, 39 of which are on the African continent....

The IMF has now approved ten new loans to countries under its new Resilience and Sustainability Trust (RST), established in 2022 to provide financial support on concessional terms to countries facing long-term structural challenges arising from two key threats: climate change and pandemic preparedne...

The new IMF climate finance mechanism faces multiple implementation challenges. It will take urgent actions from the institution and its major shareholders to avoid disillusionment among policymakers in climate-vulnerable developing countries.

One in five people on the planet live in countries at risk of debt distress. Yet the leaders and institutions that understand the challenge and could address it are instead virtue signaling and pointing the finger at others who share responsibly for a solution. We need a different approach—one that ...

The IMF has been commended for its prompt and effective response to the pandemic crisis. But its contribution to resolving the climate crisis has so far been mixed.