scissor effect definition

scissor effect means that public debt in developing countries is likely to increase further and sizeably. While the G20 has suspended official bilateral debt payments from the poorest countries – freeing up about USD5 billion for 42 low-income countries in 2020 - poor macroeconomic conditions, including currency devaluations and increased perceived country risk, are likely to lead to downgrades in developing countries’ sovereign credit ratings, increasing the interest rate spread and cost of public borrowing.47 In 2018, this spread was 1.3 per cent for a five years project and 2.5 per cent for a ten years project in BBB rated countries and it jumped up to 6 per cent and 9 per cent respectively in a B rated country. At the extreme low end of the creditworthiness ranking, more than 60 countries were rated below BBB and had before the COVID crisis, access to capital only at spreads higher than 18% for projects longer than two years.48
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Related to scissor effect

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  • Required Effective Date means the relevant Initial Required Effective Date or Increased Required Effective Date (as those terms are defined below).

  • Merger Effective Date means the date on which the Merger becomes effective.

  • Fundamental Change Effective Date means the date on which any Fundamental Change becomes effective.

  • Make-Whole Fundamental Change Effective Date means (A) with respect to a Make-Whole Fundamental Change pursuant to clause (A) of the definition thereof, the date on which such Make-Whole Fundamental Change occurs or becomes effective; and (B) with respect to a Make-Whole Fundamental Change pursuant to clause (B) of the definition thereof, the applicable Redemption Notice Date.