The Climate and Development Committee of Coordination SUD (French NGO platform) has released a new factsheet.
Bonds are a fundraising tool commonly used by development banks, governments, local authorities and businesses. A bond operates like a loan. Bondholders therefore “lend” a certain amount to the issuer (government, local authority or business) at a fixed or variable periodic interest rate until the «maturity» date, i.e. the date when the loaned amount must be paid back in full. The interest rate offered on a bond depends on the risk associated with the issuer. A bond issued by a less solvent government will potentially yield more than a «safe» bond, but the risk of nonrepayment on the maturity date is also higher. The international bond market is now said to be worth around 100,000 billion dollars2, more than the global gross domestic product (GDP) which is around 70,000 billion dollars per year.
Climate and Development Committee coordinator: Vanessa Laubin (GERES)
This factsheet has been coordinated by GERES. The contributors are: ACF, CARE-France, CCFD-Terre Solidaire, Gret, Oxfam, Secours Catholique.