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Supporting Economic Transformation (SET);

Development Finance Institutions and the Coronavirus Crisis

Published on 30 March 2020

Development finance institutions (DFIs) are mandated by their shareholders to provide finance to the private sector (usually at commercial terms, but subsidised implicitly), crowd in private sector finance and have a development impact; While DFIs aim to be additional to the market, they have not been sufficiently counter-cyclical in past crises. That has to change,as poor country firms and their workers face major hardship now. Today’s crisis is larger than those in the past; We suggest shareholders provide regulatory and financial space for DFIs to fast-track new investments, allow for some repayment postponements and announce a Bounce Back Better facility, to save companies and workers from bankruptcy and to protect previous transformation efforts so that the bounce-back is faster and better.

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Griffith-Jones,S. and te Velde, D. (2020) Development finance institutions and the Coronavirus crisis, London: ODI (https://set.odi.org/wp-content/uploads/2020/03/Development-finance-institutions-and-the-coronavirus-crisis.pdf)

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English

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Research themes
Inclusive Economies

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