Sovereign Debt Architecture

2030 Goals

Identify ways to make treatments under the Common Framework more comprehensive and deliver more upfront sovereign debt relief.
Establish processes for determining country-specific KPIs for debt relief and standardize/scale treatments based on these KPIs.
Extend the IMF-WB Debt Sustainability Framework to account for forward-looking & climate scenarios and the impact of new financing mechanisms.
Ensure appropriate treatment of climate risk in sovereign debt credit rating evaluations.

Current debt relief efforts often fail to account for specific country contexts, particularly as these relate to the need to decarbonize and climate impacts, which can increase the debt spiral. This includes aligning credit ratings to account for climate impacts.
The Global Sovereign Debt Roundtable, under the auspices of the G20, IMF, and World Bank, provides a platform for building common understanding among public and private stakeholders in sovereign debt restructurings.

Private FIs

International Banks, Institutional Investors, Credit Rating Agencies

Public FIs

Development Finance Institutions, State-owned Enterprises, Sovereign Wealth Funds

Multilateral Development Banks

World Bank

International Organizations

International Monetary Fund

Leading Countries and Alliances

Germany, China, Kenya, Ghana, Chad, Ethiopia, Zambia, G20 Ministries of Finance, IFA WG

Supportive Stakeholders

UN Sustainable Debt Coalition, UN Finance for Development

The below resources all pertain to the topic of Sovereign Debt Architecture.

Fiscal Space, Sovereign Debt Architecture

Columbia School of International Public Affairs

Fiscal Space, Sovereign Debt Architecture

Climate Bonds Initiative