Rendemic uncertainties in developing countries: Issues arising from an increased interdependence between banks and the state

An increased recourse to financing from the domestic banking sector has proved to be an important source of resilience for many developing countries in their efforts to face expenditures generated by the Covid-19 crisis. The second issue of MacroDev Semestrial Panorama offers an analysis of the consequences of an increase in sovereign indebtedness to the local financial sector and of the risks associated with this closer interconnection between states, central banks and commercial banks. Ten brief country surveys complement the issue and, through a summary of the main economic and financial challenges faced by these countries, illustrate the stakes of financing in developing economies.