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☆ Harvard professor on U.S. economic outlook ahead of 2024 election
▼ + stars: | 2024-06-06 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailU.S. economy: We're 'going from bad to worse' in terms of fiscal sustainability, says professorCarmen Reinhart, Minos A. Zombanakis Professor of the International Financial System at the Harvard Kennedy School, says "there is no prospect of putting a brake on the debt build-up" no matter who wins the U.S. election.

Persons: Carmen Reinhart, Minos Organizations: U.S, International, Harvard Kennedy School

☆ World Bank's Malpass: debt assessments should reflect growing share of domestic debt
▼ + stars: | 2023-04-26 | by ( Andrea Shalal | ) www.reuters.com time to read: +2 min

WASHINGTON, April 26 (Reuters) - Debt sustainability analyses carried out by the World Bank and International Monetary Fund should reflect the growing share of domestic debt in many developing countries' overall debt levels, World Bank President David Malpass said on Wednesday. Malpass called for urgent measures to jump-start sovereign debt restructuring efforts for the many countries that are in or near debt distress, after years of glacial progress under the Group of 20 Common Framework. Speaking at a World Bank event entitled "Breaking the Impasse in Global Debt Restructuring," Malpass said it was critical to get a better understanding of countries' total debt levels, including both domestic and external debt. Carmen Reinhart, the World Bank's previous chief economist, told the event that there were ongoing concerns about "hidden debt" and the transparency of external debt levels, including "severely underreported debt levels" owed to China, now the world's largest bilateral creditor. She said there were no publicly available data on net reserves, and questions about contingent liabilities also compounded the problem of accurately analyzing debt levels.

☆ Belt and Road Initiative: China spending billions to bail out megaproject's debtors
▼ + stars: | 2023-03-28 | by ( Jessie Yeung | ) edition.cnn.com time to read: +6 min

For one, China’s loans are far more secretive, with most of its operations and transactions concealed from public view. The PBOC requires an interest rate of 5%, compared to 2% for IMF rescue loans, the study said. There is also public concern in some countries over issues like excess debt and China’s influence. Accusations that Belt and Road is a broad “debt trap” designed to take control of local infrastructure, while largely dismissed by economists, have sullied the initiative’s reputation. In January, Chinese Foreign Minister Qin Gang rejected the accusations of China creating a “debt trap” in Africa, a major recipient of Belt and Road investments.

REUTERS/Thomas Suen/File PhotoJOHANNESBURG, March 28 (Reuters) - China spent $240 billion bailing out 22 developing countries between 2008 and 2021, with the amount soaring in recent years as more have struggled to repay loans spent building "Belt & Road" infrastructure, according to a study published Tuesday. People's Bank of China (PBOC) swap lines accounted for $170 billion of the rescue financing, including in Suriname, Sri Lanka and Egypt. China's rescue lending is "opaque and uncoordinated," said Brad Parks, one of the report's authors, and director of AidData, a research lab at William & Mary College in the United States. China is negotiating debt restructurings with countries including Zambia, Ghana and Sri Lanka and has been criticised for holding up the processes. In response, it has called on the World Bank and International Monetary Fund to also offer debt relief.

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