Multilateral Support Vital: IDB

Multilateral support will be vital for LatAm, particularly if access to credit market remains constrained for several years, a study conducted by the IDB shows. “The region’s 7 biggest economies need to finance $400bn of maturing public debt in the next 2 years and may potentially need another $200bn to finance their growing budget deficits,” the IDB says. The study recommends the multilateral system should help countries achieve sustainable fiscal positions gradually while protecting social programs and enhancing productivity. In addition, it says multilateral institutions should shift their policies towards long-term financing from short-term emergency lending.