Moody's Investors Service said that the negative outlook for global creditworthiness in 2021 reflects the economic, financial and social shock caused by the coronavirus pandemic and measures taken to contain its repercussions.
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The agency stated in a report that (Amazon.com) received its copy, that the large fiscal deficit will push government debt levels to the highest levels recorded since the post-World War II period. . For many of the poorest countries, debt ratios in the coming year will return to, or exceed, the levels reached prior to the HIPC initiatives launched in 1996.
Lucy Vella, Senior Vice President - Credit Officer and co-author of the report at Moody's, said: In 2021, we expect most, if not all, global economies to start In the gradual recovery from the shock caused by the Corona pandemic, while governments will continue to reduce support measures for families and companies.
Fela continued: However, neither of these two factors will lead to more than one halt, and in some cases simply, erosion of government finances, which will be much weaker yet. The crisis than it was before.
In the short term, according to the report, sovereign bodies with lower credit ratings will be affected more due to their reduced economic and institutional strength as well as limited access to finance compared to the sovereign bodies with features Strong credit.
However, in the medium term, sovereigns across the rating spectrum will increasingly face difficult political trade-offs, most of which relate to the need to design exit strategies and the reforms needed to address Structural defects created by or exacerbated by the Corona crisis, with an attempt to reconcile a set of social and economic tensions that have emerged over the past few months.
