External Debt In Small Island Developing States: One-year into the COVID-19 crisis, where do we stand? (OECD Report)

This paper gives an overview of debt in small island developing states (SIDS). It provides an analysis of liquidity and solvency problems faced by SIDS and introduces a quantitative estimation of hidden (or off-the-radar) Chinese overseas loans.

The paper finds that debt challenges, exacerbated by the economic consequences of the COVID-19 pandemic, are not homogeneous across SIDS. It also finds that the current debt problem in SIDS is deeply rooted and not just a one-off liquidity problem linked to the COVID-19 crisis.

Lastly, it reviews current alleviating measures to help SIDS overcome the looming debt crisis, and explores additional measures to enhance resilience and sustainability of their development financing.