SDR allocation a positive but won’t solve debt woes

The $650bn allocation of IMF Special Drawing Rights (SDRs) that was finally signed off by the IMF yesterday should provide welcome relief to some frontier markets such as Ghana and Kenya that still face very high foreign borrowing costs. But it won’t solve the underlying problems in EMs where debt dynamics look unsustainable, such as Tunisia and Argentina.
Shilan Shah Senior India Economist
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