September 30, 2020 |
The coronavirus pandemic is causing a severe strain on Latin America’s public finances. Many countries in the region may not be able to pull out of their increasing debt burdens unscathed unless they can secure enough low-cost credit in the coming years.
“The improved liquidity in markets created by the US Federal Reserve and the European Central Bank is a step in the right direction,” Omar Zambrano, professor of economics at Venezuela’s Andrés Bello Catholic University (UCAB) and former senior economist at the Inter-American Development Bank (IDB) said referring to the massive monetary policy supports from two of the world’s leading central banks.
“The trouble is that this will give access
Adjustments in the wake of the pandemic will need to be gradual and most countries in the region will require more access to low-cost financing