The impact of the Sars-coV-2 virus epidemic on the level of foreign debt of developing countries – analysis of the available literature

Abstract

The SARS-CoV-2 virus outbreak came suddenly, devastating the health systems of other countries regardless of the financial condition of individual countries. And although at the end of 2019 it seemed that it would remain a problem in the Far East, the mechanisms related to globalization and human mobility meant that within a few weeks the strength and capabilities of almost the entire globe were exposed to a huge challenge—similar for every country. All of this took place at a time when analysts boldly predicted another financial crisis—at a time of raging economic processes. These, in turn, are closely related to the necessity to incur foreign debts—especially in the case of developing countries. Therefore, it seems reasonable to analyze the current information in this regard, based on the published data and the position of analysts in this problematic area. At the same time, it will be an introduction to further analyses in-depth with comprehensive data for the coming months.