Flexible Instruments Needed For Vulnerable Countries
(Barbados Government Information Service) – Prime Minister Mia Amor Mottley is calling for the COVID-19 debt of vulnerable countries to be addressed with new and flexible instruments that would not hobble their development after the pandemic.
She made the call (on Tuesday) while addressing a virtual roundtable on SIDS Access to Finance – Identifying Solutions for Resilience.
Ms. Mottley said the instrument must not “leave a lasting scar on our debt to GDP figures that would depress growth and development for a generation”.
She added: “Once a financial crisis sets in, then the social implosion starts and it takes a generation to recover from a social implosion while a recovery from a debt crisis appropriately managed can happen within years.”
Ms. Mottley suggested that there should be COVID-linked financial instruments where the payback obligations followed the country’s medical and economic recovery.
Read more at: Barbados Government Information Service