News from Around the World

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A closed sign at the U.S. Capitol. Photo by: brownpau / CC BY

How is the US government shutdown impacting development?


WASHINGTON — Catholic Relief Services received approval in early December from the U.S. Agency for International Development for an ongoing program in Malawi and submitted the necessary documents, but was then told by USAID it could not disburse the funds because of the partial U.S. government shutdown.

FT

Chinese corporate bonds set for another wave of defaults


Chinese private companies may face an even more difficult ride in the domestic bond market in 2019 as billions of renminbi in maturing issuance conspire with reduced risk appetite, threatening an even bigger wave of defaults. 

Overload: in emerging markets public debt it is at levels not seen since the debt crises of the 1980s © AP

IMF urges creditors to agree sharing of bailout burdens


A growing risk of debt distress in low-income nations has made it crucial that countries agree how any bailout burden should be shared, a senior IMF official warned on Friday.

The comments, in a blog by Martin Muehleisen, director of the IMF’s strategy, policy and review department, reflect deepening concern over a build-up of opaque Chinese lending to developing countries.

The circulation of a letter from the investor Seth A. Klarman is likely to add to the typical hand-wringing at the World Economic Forum in Davos, Switzerland. The letter says mounting debt since the financial crisis could lead to a panic.CreditCreditFabrice Coffrini/Agence France-Presse — Getty Images

Chilling Davos: A Bleak Warning on Global Division and Debt


DAVOS, Switzerland — As business and political leaders arrive in the Swiss Alps for the annual meeting of the World Economic Forum, a surprisingly alarming letter from an influential investor who studiously eschews attention has already emerged as a talking point.

The letter, written by Seth A. Klarman, a billionaire investor known for his sober and meticulous analysis of the investing world, is a huge red flag about global social tensions, rising debt levels and receding American leadership.

Graphs and charts. Photo by: Lukas / CC0

3 key development finance trends to watch


PARIS — Even before the Sustainable Development Goals passed, it was clear that the private sector and private finance would be critical to achieving the ambitious objectives. But the conversation has evolved significantly since then — raising questions and creating new challenges.

Juan Guaidó

Juan Guaidó wins diplomatic recognition as Venezuela’s president


The crowd urged him on. “Swear in! Swear in!” they chanted. And then he did. Juan Guaidó, the gangly 35-year-old politician—unknown to most Venezuelans a month ago—raised his right hand and declared himself acting president of the republic. Tens of thousands of people, gathered in Caracas on January 23rd as part of a national demonstration against the disastrous regime of Nicolás Maduro, now deemed a usurper, let out a raucous cheer.

A conversation on humanitarian investing with ICRC President Peter Maurer, ECHO Director-General Monique Pariat, United Nations humanitarian chief Mark Lowcock, IKEA Foundation CEO Per Heggenes, and moderated by Devex President and Editor-in-Chief Raj Kumar during the World Economic Forum in Davos. Photo by: Kate Midden

Humanitarian investing gathers speed at Davos


DAVOS, Switzerland — Finding ways to channel more private investment into humanitarian settings was a hot topic this year at Davos — the World Economic Forum’s 48th annual meeting in Switzerland — which included the tentative launch of a development impact bond to create jobs for Syrian refugees.

Greece

Greece plots return to debt market with new bond issue


Greece plans to tap the international bond market for the first time since emerging last August from its third bailout programme, it was announced on Monday. The country revealed plans to issue a five-year syndicated bond following a sharp fall in yields on the country’s debt.

The bullish performance has come after the minority Syriza government ratified a deal to change Macedonia’s name, ending a 28-year dispute with its Balkan neighbour.

AIIB chief Jin Liqun says the bank has started lending to China, but intends to limit exposure to10% of its total portfolio © Bloomberg

China ‘rebalances’ overseas lending on debt burden concerns


China is “rebalancing” its overseas lending practices in the face of mounting concerns over the debt burdens of developing countries, the head of the Asian Infrastructure Investment Bank told the Financial Times on Tuesday. 

Infrastructure investment in Asia’s largest developing countries fell in 2017 and 2018, amid a deleveraging campaign in China and deepening concern over the fiscal impact of Chinese-backed mega projects on their host countries. 

President Trump meeting with Republican members of Congress last week at the White House.CreditCreditDoug Mills/The New York Times

Trade Talks With China Open in Washington, as Obstacles Abound


Top officials from the United States and China will sit down in the Eisenhower Executive Office Building on Wednesday for two days of face-to-face trade talks that could prove critical to the trajectory of the world economy.

Negotiations to end a monthslong trade war between the world’s two largest economies will be led by Robert Lighthizer, the United States trade representative, and Liu He, China’s vice premier. President Trump plans to meet with Mr. Liu at the conclusion of the talks on Thursday.