What policies can developed to resolve debt problem, Business Economics

What policies can less developed countries follow to resolve their debt problem?

Highly indebted countries can resolve by less developed countries:

  • Seek help by international agencies for example International Monetary Fund /World Bank Highly Indebted Poor Countries initiative. Less developed countries are needed to show good governance, implement economic reforms, include civil society and meet targets conditionality
  • Effort macroeconomic stability from balancing government budgets and tight monetary policy. The resultant decrease in inflation enhances competitiveness, reduces present account deficits and assists earn foreign currency for interest payments
  • Reschedule debt repayments for example temporary suspension or longer era of repayment
  • Default that is declined to carry on paying debt.


Posted Date: 8/30/2013 7:41:08 AM | Location : United States

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