Entries for 'Debt Policy'
December 3, 2020
This Addendum references the recent extension of and modifications to the G20/Paris Club Debt Service Suspension Initiative through June 30, 2021, providing a similar extension of/modifications to the private sector Terms of Reference.
November 12, 2020
In the wake of the extension of the G20 Debt Service Suspension Initiative (DSSI), as well as recent thoughtful proposals for reforming the international sovereign debt architecture, the IIF offers these private sector perspectives that build on our September 22 letter to the G20.
November 2, 2020
DSSI-eligible SSA countries have not tapped capital markets during the pandemic. However, roughly half of these countries have continued to attract net banking inflows. Large revenue losses have brought the government debt-to-revenue ratio to a staggering 480% in 2020.
October 23, 2020
Building on the quarterly conference calls of the Principles Consultative Group, the 2020 PCG report takes stock of the impact of the Covid-19 crisis on the global sovereign debt markets, emerging markets capital flows and debt sustainability, especially in developing countries.
October 15, 2020
Gross external financing needs of DSSI-eligible countries are set to remain high at over $260bn (12.5% of GDP) in 2021; General government debt in DSSI-eligible countries is projected to peak at 56% of GDP in 2021—up from 50% in 2019
October 12, 2020
COVID-19 highlights the need for structural reform in emerging market sovereign debt financing—and makes it more urgent. High, procyclical funding costs—coupled with lower trend growth—make it difficult to find fiscal space to support sustainable recovery. Failure to deal with this challenge today could result in much higher future costs for the global economy.
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.