SuitePad
Digital Guest Engagement
7 August
Government debt is rising across the world as countries continue to borrow to release funds for economic recovery amid the pandemic.
The rising debt could lead to a global crisis plagued by unemployment, fuel instability and violence.
Tony Addison, professor of economics at University of Copenhagen, shared an article on the ways in which a global debt crisis can be prevented.
It is estimated more than 100 low to middle income countries will have to pay $130bn in debt service in 2020, out of which approximately half of it will need to be paid to private creditors.
An alternative to avoid such a debt crisis is voluntary sovereign debt buybacks, which can help in reducing debt burdens by obtaining discounts on the face value of sovereign bonds.
A multilateral buyback facility managed by the International Monetary Fund (IMF) can be implemented to manage funds from a global consortium of countries.
To ensure debt reduction, the IMF can conduct auctions and buyback certain amounts of bonds.
GlobalData's TMT Themes 2021 Report tells you everything you need to know about disruptive tech themes and which companies are best placed to help you digitally transform your business.
Find out moreDigital Guest Engagement
Bespoke Decorative Project Lighting for the Hotel Industry
State-of-the-Art Electrical Solutions for the Hospitality Industry