Entries for 'Debt Policy'
October 7, 2020
Total frontier market debt hit a new record of over 120% of GDP in Q2 2020, up 6 percentage points from end-2019. The COVID-19 pandemic has placed a spotlight on rising global debt levels and sovereign debt vulnerabilities.
September 22, 2020
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.
July 30, 2020
To date, over 40 countries have requested forbearance via the G20 Debt Service Suspension Initiative (DSSI). The DSSI could freeze over $11.5 billion of debt payments due to official bilateral creditors between May and December 2020.
July 15, 2020
Following discussions during the Paris Forum/G20 event on July 8, we are pleased to provide the following progress update on private sector engagement with respect to the G20 Debt Service Suspension Initiative (DSSI).
July 10, 2020
In response to the request for a waiver from private lenders stating that a request from sovereign borrowers for forbearance from official creditors would not constitute an event of default, we are very pleased to published this “G20 DSSI Template Waiver Letter Agreement.”
June 29, 2020
After a challenging Q1, emerging and frontier market international bond issuance picked up significantly in Q2. High yield sovereign borrowers have been accessing the market; borrowing costs are well below peak Q1 levels. We see robust issuance in most emerging and frontier markets, though sub-Saharan African borrowers are notably absent.
May 28, 2020
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.
May 28, 2020
The Terms of Reference are a toolkit for DSSI-eligible sovereign borrowers that request forbearance from their private creditors. This new framework offers a flexible template for in-scope borrowers and their private creditors to advance conversations and enable voluntary debt service suspension, on terms in line with official bilateral creditors.
May 12, 2020
This webinar addresses some of the significant questions about the credit implications of private sector participation in the G20 Debt Service Suspension Initiative (DSSI)—in particular, whether in-scope countries can achieve suspension or payment deferral without triggering negative rating actions on country and bond ratings.
May 7, 2020
DSSI-eligible sovereigns owe nearly $13bn in debt service payments to external private creditors from May 1st to end-2020; However, only 26 of the 73 DSSI-eligible sovereigns have outstanding Eurobonds, comprising a total stock of some $70bn; Eurobond debt service through the end of this year amounts to $4.9bn, of which interest payments represent $3.7bn
May 4, 2020
In response to the G20 Debt Service Suspension Initiative (DSSI) and calls in the IMFC, Development Committee and Paris Club communiqués for private sector participation, this letter provides an update on IIF activities, shares views from the international financial community, and outlines thoughts on a potential approach to voluntary private sector participation in the DSSI.
April 30, 2020
The G20 Debt Service Suspension Initiative (DSSI) could free up >$20 bn by suspending payments for the poorest countries; The DSSI may appeal to countries that rely heavily on official bilateral creditors, e.g. Cambodia, Comoros, Myanmar, Vanuatu; Countries with high external funding needs - e.g. Mongolia, Mauritania, Grenada and Dominica - could also benefit
April 16, 2020
G20 Debt Service Suspension Initiative (DSSI) calls on creditors to freeze debt repayments for poorest nations upon request; External debt in DSSI-eligible countries tops $750 billion, $510 billion of which is long-term external public sector debt; DSSI-eligible countries face external debt service payments of some $140 billion in 2020
April 9, 2020
On behalf of the IIF membership—over 450 global firms across the financial services industry—President and CEO Tim Adams expresses our grave concern about the threat to debt sustainability posed by the COVID-19 pandemic.
April 7, 2020
Global debt across all sectors rose by over $10 trillion in 2019, topping $255 trillion. At over 322% of GDP, global debt is now 40 percentage points ($87 trillion) higher than at the onset of the 2008 financial crisis—a sobering realization as governments worldwide gear up to fight the COVID-19 pandemic.
February 19, 2020
Driven mainly by government borrowing, the debt to GDP ratio in frontier markets hit a fresh all-time high of 114% in Q3 2019, with total debt nearing $3.2 trillion, up by nearly $75 billion in the first three quarters of 2019.
October 22, 2019
The 2019 Report on the Implementation of the Principles takes stock of the quarterly discussions of the Principles Consultative Group (PCG), which includes senior officials from emerging and mature market economies as well as senior bankers, investors and sovereign debt experts.
October 19, 2018
The Principles for Stable Capital Flows and Fair Debt Restructuring incorporate voluntary, market-based, flexible guidelines for the behavior of sover
October 7, 2017
Private capital inflows to the 30 major emerging markets monitored by the IIF are estimated to rise moderately from $763 billion in 2016 to $1.1 trill...
October 13, 2016
The Group of Trustees of the Principles for Stable Capital Flows and Fair Debt Restructuring held its 2016 Annual Meeting in Washington, D.C. to revie