Friday, November 22, 2019

OECD bans market loans to poor countries. New era for mixed credits

A new OECD regime for financing exports to 59 low-income countries, mainly in Africa, requires that all export involving a public counterpart in these countries has to be funded by an aid-financed mixed credit or a grant.

The new guidelines are likely to result in many donors sharply expanding their mixed credit financing schemes because the recipient countries are effectively barred from international financial markets.

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