Since being tasked by the G20 and your organizations to help, the Institute of International Finance (IIF) has worked intently over the past six weeks to facilitate discussions between the official and private sectors on voluntary participation in the G20 Debt Service Suspension Initiative (DSSI). The IIF’s Committee on Sovereign Risk Management (CSRM) has been a leading forum for these discussions, convening over 100 of the world’s foremost asset managers, banks, and others across the intermediation spectrum. CSRM members have been highly engaged and constructive, providing a valuable sounding board as well as a source of technical expertise to the official sector. This has allowed us to channel candid feedback and reaction to public sector authorities. In turn, the group has benefited from the guidance and clarifications provided by your staff and other official sector stakeholders.
As a result, we believe a frank and productive dialogue has been established between the official and private sectors, with genuine willingness to air questions, understand complexities and propose novel solutions. Importantly, the process has also facilitated meaningful direct dialogue between countries and creditors—a positive step forward for all stakeholders.
Informed by our working group discussions, this letter is meant to frame the accompanying Terms of Reference for private sector consideration of borrower requests within the DSSI. We consider these Terms to be the best possible response at this time to the call from the official sector for private sector participation. As dialogue between private creditors, sovereign borrowers and official sector stakeholders continues, we would anticipate potential future improvements/amendments to the Terms of Reference could be agreed.