Debt relief boosts growth for heavily indebted countries, study finds.
The study looked at how debt affects the economic growth of developing countries. They found that too much debt can slow down growth, but only up to a certain point. Countries with good policies face this issue when debt is between 15-30% of GDP, while for countries with bad policies, the threshold is lower. However, once debt reaches very high levels, above 70-80% of GDP, its impact on growth becomes less important. This suggests that debt relief may not always lead to better growth rates, depending on a country's level of debt and its policies.