Even the IMF is struggling to work out how much governments truly owe, as new forms of lending are increasingly opaque
IN 2016 THE government of Mozambique confessed to secret debts of $1.4bn, or 11% of GDP, mostly as loan guarantees for state-backed companies. Growth faltered, the currency slumped and foreign donors stopped contributing to the budget. The results have been “devastating”, says Denise Namburete, a civil-society activist, describing health centres that have gone two years without medicines.
If they are so minded, the G20 countries could use their voting power at the IMF to insist it hosts the data. Their endorsement will also have weight with the private sector at large, says Sonja Gibbs of the IIF. Although lenders benefit from knowing more about government debts, some are reluctant to share information they consider commercially sensitive. They will need to be pressed to participate.
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