In the past couple of years, Moscow reduced foriegn debt and saved money to fight any eventuality. But it will need much more to fight its economic woes.
United Nations Conference on Trade and Development says developing world needs debt write-off to overcome Covid-19 fallouts since they are already struggling with a rapidly growing debt burden.
European governments are scrambling to put together hundreds of billions of euros to save lives, companies, and families from going bankrupt as countries hit hardest by the virus are also those that can least afford the costs, like Italy and Spain.
The financially well-off members such as Germany and the Netherlands are hesitating to help Italy, Spain and France, where thousands have been killed by Covid-19.
As fears of a global recession grow as a result of the Covid-19 spread, African countries, along with the World Bank, have issued calls for a moratorium on debt payments.
Poor countries are saddled with billions in loans from rich countries, and the coronavirus threatens to trap them in a vicious cycle of debt.
The country, hit by a severe liquidity crunch and months of anti-government protests, was due on March 9 to repay a $1.2-billion Eurobond, while another $700 million matures in April, and a further $600 million matures in June.
Argentina had secured $50 billion in financing as part of a deal worked out with the International Monetary Fund in June. Now the the Fund has agreed to raise the lending package by $7.1 billion.
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