Policy Reform Proposals To Promote The Fund’s Capacity To Support Countries Undertaking Debt Restructuring

International Monetary Fund

No 2024/017, IMF Policy Papers from International Monetary Fund

Abstract: A number of sovereign debt restructurings over the past three years faced significant delays but the cases are now moving forward. These delays slowed access of countries to much needed Fund financial support, and alongside creditors’ efforts the Fund had to find ways forward. With significant experience now gleaned from recent restructuring cases, it is important to extract the lessons for Fund policies from this episode. Delays in future Fund engagements need to be minimized where this can be done in a manner consistent with restoring the member to medium-term external viability and ensuring adequate safeguards for the Fund. Such delays can contribute to a deepening of debt distress, making adjustment more difficult, exacerbating the debt problem, and creating inefficiency costs for both the debtor and its creditors.

Keywords: support countries undertaking debt restructuring; policy reform proposal; Fund policy; fund policy; draft Executive Board understanding; Debt restructuring; Arrears; Debt sustainability; Debt sustainability analysis; Emergency assistance; Global (search for similar items in EconPapers)
Pages: 109
Date: 2024-04-16
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