Turmoil at Twenty: Part 3

Part 3 of the series culling through the Turmoil at Twenty bank report. Here are the main points, well mostly. This is dense, there's a lot of graphs and numbers, and I probably should have had another cup of coffee before reading this.

How Much Adjustment? How Much Financing?
Two main issues in financially less stable ECA nations: external debt is maturing and new money to finance current deficits may not happen.

- High inflation and other adjustments are happening
- Decrease in imports from western Europe and the US coupled with credit tightening are increasing the problem
- Sharp decline in the price of oil impacting Russia and Kazakhstan
- This chapter compares the current crisis with the one in the mid to late 90’s when there was a considerable about of finance and adjusting going on.
- Middle and lower income nations have less budget fluctuation due to financing being for direct official sources and not FDI, however poverty is increasing and other humanitarian issues are becoming more prevalent.
- There’s a lot of info about bank and parent-host relationships between donating countries and recipient countries. As always, not all type of aid is considered equal.