Developing countries should take on new debt to help them fight the economic impact of the coronavirus pandemic — but they will later suffer an unprecedented wave of debt crises and restructurings, World Bank chief economist Carmen Reinhart has warned.

The former Harvard University professor is best known for her work with fellow economist Kenneth Rogoff on the economic damage inflicted by financial crises throughout history, which was especially relevant during the great recession of 2008-09. But their work on the risks of high debt levels has been attacked for fuelling governments’ austerity policies in the following decade.

Ms Reinhart, who became chief economist at the World Bank this year, told the Financial Times in an interview that additional government borrowing was justified in the current circumstances.

“While the disease is raging, what else are you going to do?” she said. “First you worry about fighting the war, then you

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The outbreak of Covid-19 has thrown our lives out of order.

Many have had to face health-related emergencies along with financial uncertainties, pay-cuts and, in some cases, job losses, too. So, at a time like this, when you are in need of immediate cash, one option is to liquidate financial assets such as mutual funds and fixed deposits.

If you are reluctant to liquidate them, you can alternatively get loan against your financial assets. These include loans against fixed deposits (FDs), shares, mutual funds (MFs), national savings certificate (NSC), Public Provident Fund (PPF), Kisan Vikas Patra (KVP) and life insurance policy. This may work out to be cheaper, in terms of interest and other costs, than personal loan or loan against credit card.

Most of these loans are processed either completely or partially online (where a bank representative comes home or you visit the nearest branch to get the process

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(Bloomberg) — Denmark needs to borrow more than previously expected as postponed tax collection and other stimulus take a heavy toll on public finances.



a group of people sitting at a table with an umbrella: Customers sit at terraced tables at a cafe in Copenhagen, Denmark on Tuesday, June, 16, 2020. Denmark's central bank warned of the risk of a slow recovery from the historic recession triggered by Covid-19.


© Bloomberg
Customers sit at terraced tables at a cafe in Copenhagen, Denmark on Tuesday, June, 16, 2020. Denmark’s central bank warned of the risk of a slow recovery from the historic recession triggered by Covid-19.

The country’s financing need will be 374 billion kroner ($60 billion) this year, compared with a May estimate of 294 billion kroner, the finance ministry said late on Sunday. Economists had expected a reduction because the government’s aid programs have been tapped less than forecast.

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“It’s a surprise that the government raises the financing need,” Jan Storup Nielsen, a chief analyst at Nordea Markets in Copenhagen, said by phone. “The government doesn’t seem to take into account that things have progressed better than what was predicted in the

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