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Sailing into Stormy Waters: The Return of Expensive Eurobond Debt

Developing country borrowers are once again in turbulent seas. For many emerging and low-income countries, capital markets promised access to affordable, long-term finance for development and climate resilience. But as global interest rates rose sharply between 2021 and 2022 and investor appetite for developing country debt cooled, these promises proved increasingly elusive. Many developing countries effectively lost access to international capital markets.[…]