IMF and World Bank discussing liquidity support strategies for cash-strapped low- and middle-income countries, including Ghana and Sri Lanka, amid limited external support and rising debt service costs.
The recent wave of sovereign defaults among low- and middle-income countries, including Ghana and Sri Lanka, has subsided, but a cash shortage is emerging as a major concern. Rising debt service costs and limited external support hinder essential investments in health and infrastructure. The IMF and World Bank are discussing new liquidity support strategies, while the World Bank plans to increase its lending capacity by $30 billion over ten years amid ongoing high borrowing costs.
October 21, 2024
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