The Covid-19 crisis has led to a sudden collapse in capital flows to emerging and developing countries, who now face problems servicing their external debts while addressing the growing economic strain of the pandemic. In this chapter, we explain why low- and middle-income countries are particularly vulnerable, discuss what is at stake for the world economy, and present a mechanism to implement a debt standstill which would free significant resources to cover some of the more immediate costs of the COVID-19 crisis.