Yale School of Management

Posts by International

Update on the progress of the World Bank’s COVID-19 response efforts

July 27, 2020
In March the World Bank Group (WBG) announced $14 billion in fast-track financing to help countries respond to the COVID-19 pandemic. Since then, the WBG has provided approximately $8.3 billion in both fast-track and other financing for 339 projects across 117 countries (see here). The following lists the elements comprising the package. $8 billion from the International Finance Corporation (IFC) $2.7 billion from the International Bank for Reconstruction and Development (IBRD) $1.3 billion from the International Development Association (IDA) $2 billion reprioritized from existing World Bank projects towards COVID-19 relief Continue reading “Update on the progress of the World Bank’s COVID-19 response efforts”

Who's afraid of some (not so big or bad) debt relief?

July 24, 2020
By early July 2020, top officials at the IMF and World Bank admitted that the Debt Service Suspension Initiative (DSSI), the  G20’s debt relief program faced challenges. They hoped to make some progress at the mid-July G20 meetings, but the July G20 meetings came and went without major action on the program. Considering that the DSSI was supposed to be one of the international community’s marquee responses to the most severe instance of capital flight from developing economies in recent memory, it is important for billions of people that they get the program right.  Continue reading “Who's afraid of some (not so big or bad) debt relief?”

The Limits of the G20's Debt Service Suspension Initiative

May 18, 2020
As of May 1, G20’s Debt Service Suspension Initiative (DSSI) for 76 International Development Association (IDA) countries and least developed countries (LDCs) has become operational. However, it remains unclear whether private-sector creditors will collaborate on such efforts for those countries and the question on what to do about the much larger debts of low- and middle-income countries is still open. Continue reading “The Limits of the G20's Debt Service Suspension Initiative”

EU Programs Supporting non-EU Countries

May 13, 2020
On April 22, the European Commission approved a €3 billion macro-financial assistance (MFA) program to ten neighboring countries outside the European Union for a period of one year to help them cover their immediate financing needs. Like the €20 billion Team Europe strategy announced earlier, this helps demonstrate the EU’s solidarity with other countries in tackling the COVID-19 pandemic. Continue reading “EU Programs Supporting non-EU Countries”

Multinational Organizations’ Efforts to Assist Countries through COVID-19 crisis

May 6, 2020
The International Monetary Fund (IMF), World Bank, and other multinational organizations have announced plans to make hundreds of billions of dollars available to emerging markets in response to the COVID-19 crisis. But their own experts have said these funds will probably be insufficient, and they have collectively released only a small fraction of that amount so far. Continue reading “Multinational Organizations’ Efforts to Assist Countries through COVID-19 crisis”

IFC Provides $8 Billion in Fast-Track Financing to Private Sector

April 29, 2020
The International Finance Corporation (IFC) will be providing fast-track financing of $8 billion to support companies impacted by the COVID-19 pandemic. On March 3, the World Bank Group approved $6 billion in fast-track financing through the IFC. It approved an additional $2 billion on March 17. Continue reading “IFC Provides $8 Billion in Fast-Track Financing to Private Sector”

A Long Way to Go for Emerging Markets

April 27, 2020
The developing world will soon become the frontlines in the battle against the coronavirus, and markets are bracing for the resulting fallout. The Covid-19 crisis has already had an unprecedented effect on emerging markets—more than 100 of the IMF’s member countries have already asked for aid: Simultaneous health and financial crises add fuel to the linkages between sovereign debt crises, banking crises, and growth and competitiveness crises. In this note, we discuss financial markets’ responses in the first months of the current crisis, the unique challenges EMs face compared to wealthier nations, and reasons for cautious optimism at the present moment. Continue reading “A Long Way to Go for Emerging Markets”

The IMF Expands and Expedites Lending in Response to the COVID-19 crisis

April 22, 2020
Since March, the International Monetary Fund (IMF) has expanded existing lending programs and introduced new ones to help countries bear the costs of the COVID-19 crisis. As of April 21, it had approved a total of $8.7 billion in emergency financing for over 40 member countries, of the more than 100 countries that have requested assistance. (See the updated list here). Continue reading “The IMF Expands and Expedites Lending in Response to the COVID-19 crisis”