The 2022 IIF Global Debt and Financial Stability Roundtable, sponsored by Fitch Ratings, was held in Washington, D.C. on Saturday, April 23, alongside the World Bank/IMF Spring Meetings. We also offered online access to the event for those unable to attend in-person.
As in previous years, this event brought together senior public officials from both mature and emerging market economies, leaders from the private financial sector, and senior representatives from international financial institutions and academics.
High-level discussions focused on recent developments in global sovereign debt markets and risks to financial stability. We discussed the role of ESG in supporting debt sustainability and the need to enhance the sovereign debt architecture to ensure access to sustainable capital flows and a fair and timely resolution of debt restructurings. Two interactive sessions featured expert speakers and offered participants the opportunity to ask questions and share comments:
The Role of ESG In Supporting Debt Sustainability
With sustainable finance and environmental, social and governance (ESG) considerations high on the global policy agenda, the past few years have seen a surge in demand for ESG investments. Flows to ESG debt hit a record $1.4 trillion in 2021 and are set to top $7 trillion by 2025, with emerging and developing economies receiving more than 25% of these flows. An integral part of ESG investment is promoting greater transparency and accountability, which in turn leads to better pricing of risk—a boon for sovereign debt markets and for financial stability. As the full market implications of the Russia-Ukraine crisis become clearer, this session will consider the impact of growing geopolitical risk on debt sustainability—and the potential for ESG investing and sustainable capital flows to become a strong and steady base of support for vulnerable emerging economies.
Enhancing the Sovereign Debt Architecture
Alongside the sharp rise in global debt ratios, sovereign debt markets have been through a structural transformation over the past two decades. Increased connectivity in the face of technological advancements and new product development has allowed many sovereigns to gain deeper access to both international and domestic debt markets. The rapid expansion of Eurobond markets, the development of local currency bond markets, the rise of new official creditors and south-south capital flows have broadened the investor base and enhanced market liquidity. These changes—in tandem with lessons learned from recent debt restructurings, the emergence of the DSSI and Common Framework, and the surge of investor interest in ESG considerations—all underscore the need to enhance the sovereign debt architecture to ensure access to sustainable capital flows and a fair and timely resolution of debt restructurings.
This was an invitation-only event. For additional information please contact [email protected].
IIF requires all attendees to be vaccinated against COVID-19 in advance of attending this event. We will provide more details as we get closer to the event.
COMPLIANCE WITH COVID-19 PROTOCOLS
All attendees must be fully vaccinated and comply with the COVID-19 guidelines of the local jurisdiction and IIF Offices at the time of the event. This may include social distancing, the wearing of face coverings, hand sanitation, health attestation, or other health and safety precautions. We will notify attendees of the specific protocols prior to the event.
If, during the two weeks prior to the event, you have been diagnosed with COVID-19, have been in close contact with a confirmed case of COVID-19, or have symptoms of COVID-19 which include fever, congestion, cough, and shortness of breath among other symptoms, we ask that you not attend the event in-person.
ACKNOWLEDGEMENT OF RISK
By registering for the event, you acknowledge that even diligent efforts to follow public health guidance and orders cannot guarantee that attendees will not contract the virus that causes COVID-19 at the event, and that you are participating in the event at your own risk and will comply with local government health guidelines and venue safety protocols.