Finance for Development Lab

Tracing the Drivers of SSA’s Low Sovereign Credit Ratings Tracing the Drivers of Sub-Saharan Africa's Low Sovereign Credit Ratings By Tatiana Lysenko Sovereign credit ratings are crucial to Sub-Saharan Africa's

This research emphasizes the need for nuanced interpretations of SSA ratings. A must-read for anyone in African economics & finance. Dive into the full paper here👇
findevlab.org/sub-saharan-...
#Africa #SovereignRatings

Key Finding #2: ✅ The paper finds NO statistical evidence that S&P consistently biases SSA sovereign ratings upward or downward after accounting for key factors. This highlights the complexity of rating SSA. #CreditRisk #EmergingMarkets

Key Finding #1: ✅ Slow-moving structural indicators (GDP per capita & institutional quality) are the MOST important rating drivers, alongside fiscal & external vulnerabilities #EconomicPolicy #Investment

Why are these ratings so important? 🤔 Sovereign credit ratings are vital to SSA's financial landscape, but debates rage over their accuracy and fairness. This paper dives deep into the structural factors at play.

🚨 New Paper Alert! 🚨 "Tracing the drivers of Sub-Saharan Africa's low sovereign credit ratings," by Tatiana Lysenko. Link in comments 👇
#Africa #SovereignRatings #EconomicResearch

Embedding Resilience in Eurobonds for Low-Income Borrowers Embedding Resilience in Eurobonds for Low-Income Borrowers: Options for their Design and Introduction By Starla V. Griffin In this paper, Starla V.

Link to Paper 👇
findevlab.org/embedding-re...

Innovative solutions like climate-resilient debt clauses can enhance LICs' financial resilience.
👇Download our latest paper to read more on this topic (link in comments). #SovereignDebt #Eurobonds #DevelopingCountries #SustainableFinance #ClimateResilience

Key takeaways:✅ Conventional Eurobonds can cause resource leakage, divert funds from crucial investments.
✅ LICs need sustainable financing aligned with SDGs, but face obstacles.
✅ Better governance & transparency can lower costs & boost investor confidence.

📢💰🌍 New Insights on Sovereign Debt: explore the Eurobond market & its impact on LICs. Although meant to support capital flow, the current structure often overlooks LICs' unique challenges, esp. those juggling concessional funding &non-traditional creditors.

The $4 trillion question: what is the impact of prudential regulation? By Sima Kammourieh and Jules Devie Emerging markets and developing economies (EMDEs) continue to face significant economic and financial challenges. The

🔗 Download the paper 👇
findevlab.org/the-4-trilli...

#EmergingMarkets #GlobalFinance #PrivateCapital #EconomicGrowth #Investments #FinanceTrends #Prudential #Regulation

🔍 Global uncertainties—US trade policies, potential rate hikes—complicate the picture.💡With tight public funds & rising investment needs, private capital flows are increasingly important. 📊 Our 20-year data shows a shift from bank loans to bonds for external financing.

🚨 Just Released! 🚨🌍 New Short Note 📝 "The $4 Trillion Question: Impact of Prudential Regulation?"🤔 EMDEs face ongoing economic hurdles, mainly due to high interest rates causing negative external transfers.

🔍 Read the full paper for insights on harnessing guarantees to mobilize private capital for climate action! Link to Paper 👇
findevlab.org/maximizing-c...
#ClimateFinance #BlendedFinance #PrivateInvestment

With strategic design and collaboration among MDBs, DFIs, and agencies, we can maximize leverage and attract more private investments. Addressing legal, political, and pipeline barriers is crucial.

Guarantees help reduce risks—performance, tech, liquidity—and improve project bankability. Yet, they represent only about 4% of multilateral development bank commitments, with limited access in lower-income countries.

📢 New paper on project-based guarantees in climate finance! Authored by Reuben M. Wambui and Josea K. Cheruiyot, it highlights a powerful yet underused tool of blended finance to boost private sector investments in climate projects. 🌍🌿

Debt Pressures Continue Unabatted Emerging markets face a shift from low interest rates to increased capital flight, affecting investor confidence and stability. Learn how global coordination and quick debt restructuring can help mana...

Read the note 👇
findevlab.org/debt-pressur...

#GlobalEconomy #EmergingMarkets #DebtManagement #SustainableFinance #InvestingInGrowth #DebtRestructuring #SovereignDebt #DevelopmentFinance #FfD4 #DebtCrisis

Examples like #Barbados vs. #SriLanka and #Kenya vs. #IvoryCoast show that credible, swift debt restructuring—based on transparency, trust, and coordinated effort—can be an effective solution.

Sometimes, defaulting might be the way to restore access—a coordinated global response is needed. #SovereignDebt

Capital is flowing to safe havens, hurting emerging markets. Confidence is shaky. IMF & multilateral institutions are boosting funds. But many countries still face tariffs, fragility, debt pressures. #DebtManagement

🚨 🌟 Are global markets entering uncertain territory, and what does this mean for emerging economies? New Note by Vera Songwe provides key insights on the complexities of debt resolution — what lessons can we draw from this? Link👇

Sovereign Debt Restructuring after Seville | By Daniel Reichert-Facilides Sovereign Debt Restructuring after Seville A Closer Look at paragraph 50 of the FfD4 Outcome Document Joan Oger via Unsplash By Daniel Reichert-Facilides

🔎 Read at this link 👇
findevlab.org/news_and_eve...

🚨 New Blog! 🚨 @dfacilides.bsky.social examines key shifts in the FfD4 Outcome Document's paragraph 50 on sovereign debt. Discover what it means for global finance. Read more via link in comments👇 #FfD4 #DevelopmentFinance #Legislation #Finance

Global Governance Reimagined Global Governance Reimagined

Excited to be featured in this @fordfoundation.org x Foreign Policy "Global Governance Reimagined" series! Part 1 highlights debt's devastating human toll and the solutions to the debt-development crisis. Must-read for #FfD4.

@mkessler.bsky.social @mazzucatom.bsky.social @jayatighosh.bsky.social @marinazucker.bsky.social

Publication Results - Initiative for Policy Dialogue Publication Results Presets: Books Working Papers Journal Articles Policy Briefs Network Papers The Commons Subscribe to our Newsletter * indicates required Email Address * First Name Last Name /* rea...

Link to the Jubilee Report 👇
ipdcolumbia.org/publication/...

We were honoured to contribute to this report alongside the Vatican and more than 30 prominent economists worldwide, including Joseph Stiglitz and Martín Guzmán, to present a bold and actionable plan for reforming our global financial system.

The Vatican-backed Jubilee Report: A Blueprint for Tackling the Debt and Development Crises and Creating the Financial Foundations for a Sustainable People-Centered Global Economy launches today! #JubileeReport, #Jubilee2025, #TurnDebtIntoHope

Link to the Jubilee Report 👉 bit.ly/4kNj3e8

AAV Dialogue Series | Options to Address the Cost of Capital Conundrum for Africa The 17th AAV Dialogue focused on the cost of capital and its implications for African countries, particularly in the context of upcoming global financial

📝Read the summary of the discussions👇
findevlab.org/aav-dialogue...