* G20 takes up growth-linked bond proposal
* Crisis tool originally targeted emerging economies
* But Britain, Germany may need to take lead
* IMF to complete review early next year
Some of the world’s most advanced economies may club together to sell growth-linked bonds, creating a market that could help avert future debt crises, sources familiar with discussions among Group of 20 policymakers told Reuters.
Countries like Britain and Germany could breathe life into an academic theory intended to offer poorer, emerging economies some respite if they fall on hard times.
Growth-linked bonds allow a government’s debt repayments to fluctuate during economic cycles – meaning …read more
Source: Gulf times
