As the consequences of the COVID-19 pandemic for the global economy and financial markets continue to unfold, we at the Institute of International Finance (IIF) have been encouraged by the progress of the G20 Debt Service Suspension Initiative (DSSI). The rapid efforts to provide cash flow relief and liquidity to some of the world’s most vulnerable countries have been a valuable complement to the more comprehensive financing measures that the IFIs, official donors, and private-sector investors are providing to support their economies at this difficult time.

We remain strongly supportive of the intent behind the DSSI. However, we also recognize that the underlying premise may have changed—the issues in some countries are no longer temporary liquidity problems, but rather more fundamental solvency concerns. This letter sets out three key points which we believe are crucial:

1. Private finance is an essential component of the financing equation and market access is therefore vital;
2. A case-by-case approach is unavoidable; and
3. The focus going forward must be on sound policies and long-term sustainability—including ESG considerations and support for the Sustainable Development Goals.