At last, the Financial Stability Board has woken up to assess the potential financial stability risks emanating from leveraged loans that currently stand at more than $1.3tn (“Watchdog turns up heat on leveraged loan industry as high risk debt soars”, March 8).  Since 2010, leveraged lending issuance has witnessed a rapid growth as yield-hungry investors rushed to grab the specialist loan vehicles — collateralised loan obligations.

What is worrisome is not merely the magnitude of outstanding debt, but the deteriorating underwriting standards for leveraged loans. Close to 80 per cent of outstanding US leveraged loans are covenant-lite, placing fewer restrictions on the borrowers and lesser…

More than 300 civil society groups and trade unions from 73 countries – including Madhyam – have urged governments participating in United Nations meetings in Vienna this week to completely overhaul the controversial Investor-State Dispute Settlement (ISDS) system contained within many international trade and investment agreements. Released on October 30, their public letter is addressed to member governments attending meetings of the UN Commission on International Trade Law (UNCITRAL), which provides one set of rules under which many ISDS cases are litigated. After years of public outcry against ISDS, UNCITRAL has decided to convene a working group to engage in a discussion about the…

Martin Sandbu rightly warns about the diminishing role of the IMF as a crisis manager (Free Lunch, September 19). The challenges faced by the fund are much bigger than its lack of financial resources to put out fires. The current financial market turmoil in Argentina shows the IMF’s standby loan of $50bn — the largest ever credit line in IMF history — has failed to provide an effective anchor for addressing financial vulnerabilities and bolstering market confidence.

The immediate disbursement of $15bn (30 per cent of the total IMF loan) to Argentina did not help in averting currency collapse or arresting capital flight.

These developments in Argentina may…

While nearly 90 members did not support discussions on investment facilitation at the WTO’s Eleventh Ministerial Conference held in Buenos Aires in December 2017, a group of 70 members decided to launch a plurilateral initiative. Broadly speaking, investment facilitation refers to measures aimed at helping investors to start, operate and exit their businesses. Aimed at removing ground-level obstacles, it seeks to enhance the investment environment by improving transparency and predictability of investment policies, streamlining administrative procedures and adopting tools to handle inquiries or complaints by investors. Such measures are often seen as a means to attract FDI and maximize its contribution to development.

Notwithstanding that investment…