Entries for 'Debt Policy'
October 31, 2022
The lingering effects of the COVID-19 pandemic and sharp slowdown in global growth—coupled with higher borrowing costs, inflation, currency depreciation and the rising incidence of droughts and floods related to climate change—has resulted in a very challenging landscape for emerging market sovereign borrowers this year. Against this backdrop, the 2022 Implementation Note of the Principles Consultative Group (the "PCG Report") offers an overview of key initiatives to improve the international sovereign debt architecture, including an update of the Principles for Stable Capital Flows and Fair Debt Restructuring.
October 27, 2022
With funding costs on the rise across emerging markets, having strong investor relations (IR) programs is more important than ever to help ensure access to affordable and sustainable capital flows.
October 24, 2022
As borrowing slowed, frontier market debt dipped to $3.5 trillion in Q2 2022—still $480 billion above pre-pandemic levels. Helped by economic recovery in an inflationary environment, the FM debt-to-GDP ratio edged down to 103% in Q2 2022.
June 21, 2022
Successful investors relations programs (IRP) feature direct communication between sovereign borrowers and market participants. The IIF Best Practices for Investor Relations help define the types of formal communication channels available to country authorities and guide the establishment of this connection with market participants.
June 21, 2022
The Institute of International Finance welcomes the opportunity to respond to the House of Commons International Development Committee’s inquiry on debt relief in low-income countries. We commend the Parliament for taking this step in investigating this important issue.
May 18, 2022
Total global debt rose by $3.3 trillion in Q1 2022 to a new record of over $305 trillion-mostly due to China and the U.S.
April 28, 2022
The rapid buildup in sovereign debt levels over the past 15 years has greatly increased the risk of further debt strains—especially in highly-indebted developing countries—as global rates climb; higher food and energy prices also hurt; Timely sovereign debt workouts are a challenge: studies suggest that official creditors are slower to coordinate in resolving arrears than private creditors—concerning, as a large portion of low-income countries’ debt is owed to official creditors; The updated Principles for Stable Capital Flows and Fair Debt Restructuring offer an effective framework for debt crisis prevention and resolution, highlighting the best market-based practices to promote sustained market access.
April 28, 2022
The Principles for Stable Capital Flows and Fair Debt Restructuring are voluntary guidelines offering an effective framework for sovereign debt crisis prevention and crisis resolution to promote sustained market access.
October 27, 2021
The 2021 Principles Consultative Group (PCG) report features an interim report on updating the Principles for Stable Capital Flows and Fair Debt Restructuring based on contributions from PCG members. Changes in sovereign debt markets over the past decade, lessons learned from recent debt restructurings, the emergence of the DSSI and Common Framework, and the surge in investor interest in ESG considerations all underscore the need to update the Principles.
October 8, 2021
Total debt in frontier markets increased by $126 billion to a fresh record high of $3.4 trillion in H1 2021. With higher commodity prices supporting recovery, debt/GDP ratios remained broadly stable at around 110% of GDP in H1 2021.
April 29, 2021
This Second Addendum references the recent extension of and modifications to the G20/Paris Club Debt Service Suspension Initiative through December 31, 2021, providing a similar extension of/modifications to the private sector Terms of Reference.
April 9, 2021
In light of the 2021 Spring Meetings of the World Bank Group and International Monetary Fund, this letter provides private sector views that build on our November 2020 letter to the G20.
April 5, 2021
Total debt in frontier markets (FM) reached a record high of nearly 110% of GDP in 2020, up from less than 100% in 2019. We have added 15 new countries to our FM debt database.
March 4, 2021
2020 saw a record number of sovereign bond defaults: Argentina, Belize, Ecuador, Lebanon, Suriname, and Zambia; However, most low-income economies continue to roll over their debt obligations successfully; To date, only 18 low-income countries have asked to suspend debt repayments for H1 2021—down from 44 in 2020 ; For help beyond the DSSI, a few countries have turned to the G20 Common Framework; questions about the process remain
January 7, 2021
As the mountain of negative-yielding debt hits new record highs, EM sovereigns continue to benefit from the search for yield ; Emerging markets set to rely increasingly on USD borrowing as abundant global central bank liquidity persists; China has significantly cut back its lending to low-income countries
December 3, 2020
To support debtor countries requesting debt service suspension from their private creditors, we have published Summary Terms for a Voluntary Debt Serv...
December 3, 2020
This Addendum references the recent extension of and modifications to the G20/Paris Club Debt Service Suspension Initiative through June 30, 2021, providing a similar extension of/modifications to the private sector Terms of Reference.
November 12, 2020
In the wake of the extension of the G20 Debt Service Suspension Initiative (DSSI), as well as recent thoughtful proposals for reforming the international sovereign debt architecture, the IIF offers these private sector perspectives that build on our September 22 letter to the G20.
November 2, 2020
DSSI-eligible SSA countries have not tapped capital markets during the pandemic. However, roughly half of these countries have continued to attract net banking inflows. Large revenue losses have brought the government debt-to-revenue ratio to a staggering 480% in 2020.
October 23, 2020
Building on the quarterly conference calls of the Principles Consultative Group, the 2020 PCG report takes stock of the impact of the Covid-19 crisis on the global sovereign debt markets, emerging markets capital flows and debt sustainability, especially in developing countries.