Debt-Relief Stigma Risks Hurting, Not Aiding Neediest Nations

When African ministers held a video conference call to discuss debt relief last week, the same concern kept cropping up: how to cut the payments without jeopardizing future access to markets.

One finance minister, who asked not to be named because of the sensitivity of negotiations, said creditors may victimize his country if he is too vocal about a waiver in public. Benin’s Finance Minister Romuald Wadagni has argued the risk of being shut out of debt markets may outweigh the benefits of a debt-service suspension.

The concerns underline the looming realization among governments and policy makers that asking bondholders ...