Moody’s Clashes With UN Over G20 Debt-relief Efforts

Moody’s has clashed with the UN after putting five countries on review for a downgrade in recent weeks, saying that a G20-backed debt suspension scheme poses risks to private creditors, the Financial Times reported. The rating agency took action against Ethiopia, Pakistan, Cameroon, Senegal and the Ivory Coast, after the countries opted into a G20-backed initiative that allows them to freeze official bilateral debt repayments due this year to member nations and members of the Paris Club, a group representing major credit countries. Moody’s said participation in the scheme — which has been endorsed by the World Bank — raises the risk of losses for investors in the countries’ bonds, because the G20 has called on private-sector creditors to offer “comparable” relief. Read more