Anna Gelpern (PIIE), Sean Hagan (PIIE) and Adnan Mazarei (PIIE)
Low and middle-income countries burdened by debts need extra help in the COVID-19 crisis. The G20 should support an agreement between debtors and creditors (both official and private) for a temporary pause on debt payments, known as a standstill. In some cases, a majority of creditors can impose a standstill over the objections of the minority. A central coordination mechanism should also be set up to help develop longer-term sovereign debt strategies for these countries.
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