3:44 pm, Mon September 21, 2020

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A Working Group report authored by the Inter-American Development Bank (IDB) and the Centre for Global Development (CGD) has revealed that the COVID-19 pandemic has given rise to challenges in the financial systems of countries in Latin America and Caribbean countries.

In the report titled “Sound Banks for Healthy Economies: Challenges for Policymakers in Latin America and the Caribbean in Times of coronavirus,” the organisations suggested the deep recession and the serious income losses for families and firms may provoke significant challenges for financial systems.

The IDB and CGD acknowledged that the COVID-19 crisis has already taken a large toll on Latin America and the Caribbean in terms of confirmed cases and deaths as well as sharp declines in economic activity.

The organisations also expressed that it is far from over, noting that they are still unclear how long the health crisis will persist and how soon and how fast economies will recover