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The FINANCIAL - Researchers find climate change imperils countries' ability to repay pandemic debts


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The FiNANCIAL  As the International Monetary Fund (IMF) and the Board of Governors of the World Bank Group convene their spring meetings, researchers at Oxford University find that most governments have paid scant attention to the effect that climate change could have on their ability to repay debts built up over the pandemic, Oxford University notes.
They estimate that $783 billion has been borrowed from the private sector through sovereign bonds that mature 30, 50 or 100 years from now. However, 77% of countries have not disclosed the risks they face due to climate change in this same time period, in a world projected to face growing climate impacts. This lack of disclosure could lead to a severe debt crisis. Over the 30 to 50-year period covered by much of the COVID-19 lending, changes in global average temperatures alone could cause GDP to drop by tens of percentage points in some countries. ....

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