The coronavirus (COVID-19) crisis provides a new context for donors to assess the relevance of guarantees in addressing challenges linked with a sustainable recovery. The paper argues there may be significant scope for more and better use of guarantees to build back better in response to the crisis. The paper also discusses how guarantees can promote more investment particularly in underdeveloped and underserved markets, such as least developed countries (LDCs).
The role of guarantees in blended finance
Working paper
OECD Development Co-operation Working Papers
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