Violent conflict and cross-border lending
UE, NATO, Politica externa
How states leverage sovereign debt to support their military endeavours has been examined thoroughly, but the relationship between private finance and armed conflict remains underexplored. Using data on loans by creditors to firms in 179 countries over 1989–2020, this column documents how foreign banks reduce overall lending relative to domestic banks during violent conflicts but significantly increase their financing of military and dual-use sectors. This reallocation is stronger among lenders
din zilele anterioare