Amid dramatic capital outflows, a collapse in commodity prices and a surge in dollar demand, the pandemic has made it significantly difficult for emerging markets to refinance debts. Preventing debts from becoming permanently unmanageable is crucial. Sean Hagan, former general counsel and director of the legal department at the International Monetary Fund (2004-18) and professor at Georgetown University Law School, joins OMFIF’s Mark Sobel to discuss sovereign debt restructuring. They cover the balance between new money and debt relief adjustment, differentiating between low income counties and emerging markets, and the role of Chinese credits and the private sector.
Global Financial Stability Overview: Markets in the time of COVID-19