Debt and innovative finance in developing countries

The United Nations University World Institute for Development Economics Research (UNU-WIDER) and The Bank of Finland Institute for Emerging Economies (BOFIT) will convene a two-day conference on 'Debt and innovative finance in developing countries' in Helsinki, Finland, on 27-28 October 2022.

The COVID-19 pandemic has greatly exacerbated the macroeconomic vulnerabilities of low- and middle-income countries. Debt was already high prior to the onset of the pandemic, but now many developing country governments must navigate through record-high public and private debt levels, and rising inflation. Default rates are rising and the need for debt restructuring is growing. The 2022 Russian invasion of Ukraine is adding to uncertainties.

The world is still some distance away from finding an adequate legal framework for restructuring sovereign debt. At the same time, innovations such as green bonds allow significant opportunities for developing countries to use new financial instruments to promote a sustainable recovery out of the pandemic.

This conference brings together a set of leading scholars and policymakers to discuss the way ahead on the debt challenges faced by developing countries as well as the opportunities to use innovative financial instruments to promote low carbon transitions.

The two-day event features notable speakers from various finance and development institutes and academia. Opening remarks are delivered by Pasi Hellman, Under-Secretary of State for Development Policy, Ministry for Foreign Affairs in Finland. Bengt Holmström (MIT), Ugo Panizza (Geneva Graduate Institute of International and Development Studies), and Sarah Colenbrander (ODI) provide keynote addresses.

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