April 13, 2023 (MLN): The Global Sovereign Debt Roundtable (GSDR) on Wednesday met to discuss the challenges of debt sustainability and restructuring and ways to address them, according to the statement issued by the International Monetary Fund (IMF).
The discussion focused on finding ways to accelerate debt restructuring processes and make them more efficient, including, under the G20 Common Framework, the IMF Managing Director Kristalina Georgieva, World Bank Group President David Malpass, and Indian Minister of Finance Nirmala Sitharaman co-chair of the GSDR said in the statement.
Participants agreed on the urgent need to improve information sharing, including macroeconomic projections and debt sustainability assessments at an early stage of the process.
To support the predictability and fairness of debt restructuring processes, a workshop will be organized in the next few weeks on how to assess and enforce the comparability of treatment. Further work will also be undertaken on principles regarding cut-off dates, formal debt service suspension at the beginning of the process, treatment of arrears, and perimeter of debt to be restructured, including with regard to domestic debt.
The role of Multilateral Development Banks (MDBs) in these processes was also discussed, with the International Development Association’s (IDA) provision of positive net flows and increased concessional and grants to countries facing higher risks of debt distress being welcomed, the statement added.
The IMF, World Bank, and the G20 Presidency will continue to work closely together and with other partners to further support the international response to current debt challenges.
The meeting was attended by Paris Club and non-Paris Club creditors, debtor countries, and representatives of the private sector.
