Sovereign debt vulnerabilities of low income and emerging market countries have further increased from already historically high debt levels because of the COVID-19 pandemic despite extraordinary action by G20 sovereigns¡ªcentral banks, the G20¡¯s Debt Service Suspension Initiative, International Financial Institutions, in particular, the World Bank and the International Monetary Fund (IMF)¡ªemergency financing, and the international community at large. The IMF and the World Bank cooperate closely in the area of sovereign debt to assist their members to prevent and resolve sovereign debt crisis.
A recent IMF staff note for the G20 concluded, inter alia, that while the international architecture for sovereign debt for private sector creditors has worked well for bonded debts, there are a number of challenges, such as the lack of equivalent standardized tools to restructure non-bonded debt, the increase in certain types of debt such as collateralized debt, and the continued existence of information asymmetries between debtors and creditors.
This session will explore options to address some of the challenges identified.
This Session is By Invitation Only.