Entries for 'Debt Policy'
November 16, 2023
Global debt reached a staggering $307 trillion in Q3 2023, with a big increase across the board in both mature markets (U.S., Japan, France, and the UK) and emerging markets (China, India, Brazil, and Mexico).
October 25, 2023
Sovereign debt vulnerabilities in emerging markets and developing economies were already high before the pandemic and have been further exacerbated by rising global interest rates. Debt strains remain particularly pronounced in low and lower-middle income countries. With heavy reliance on foreign currency borrowing persistently posing significant challenges for some sovereign borrowers, interest expense on local currency debt now accounts for over 80% of total interest costs for emerging market governments.
October 5, 2023
After reaching an all-time high of $3.5 trillion in Q1 2023, total debt in frontier markets (FM) saw a slight decline in Q2 2023.
September 19, 2023
In a higher-rate environment, the global debt stock rose by $10 trillion to a new record high of $307 trillion in H1 2023.
June 13, 2023
Our annual assessment of Investor Relations and Debt Transparency practices reveals a wide range of practices across emerging markets and developing countries with Indonesia, Türkiye, Philippines, Colombia, and Brazil achieving the highest scores.
May 17, 2023
The global debt stock grew by $8.3 trillion to a near-record $305 trillion in Q1 2023; the combination of high debt levels and rising interest rates has pushed up debt service costs, prompting concerns about the use of leverage in the financial system.
April 12, 2023
Ahead of the Global Sovereign Debt Roundtable, the G20 Ministerial Meetings and IMF and World Bank Spring Meetings, this letter sets out private sector perspectives on the work of the G20-IMF-World Bank convened Global Sovereign Debt Roundtable.
April 12, 2023
Some $120 billion was added to the debt pile of frontier markets in 2022, bringing it to an all-time high of $3.6 trillion.
February 22, 2023
The nominal USD value of global debt declined by some $4 trillion to slightly below $300 trillion in 2022. Helped by stronger growth and inflation, global debt/GDP fell again in 2022 – but is still above pre-pandemic levels.
November 22, 2022
With higher interest rates weighing on issuance, global debt edged lower again in Q3 2022, to some $290 trillion.
October 31, 2022
The lingering effects of the COVID-19 pandemic and sharp slowdown in global growth—coupled with higher borrowing costs, inflation, currency depreciation and the rising incidence of droughts and floods related to climate change—has resulted in a very challenging landscape for emerging market sovereign borrowers this year. Against this backdrop, the 2022 Implementation Note of the Principles Consultative Group (the "PCG Report") offers an overview of key initiatives to improve the international sovereign debt architecture, including an update of the Principles for Stable Capital Flows and Fair Debt Restructuring.
October 27, 2022
With funding costs on the rise across emerging markets, having strong investor relations (IR) programs is more important than ever to help ensure access to affordable and sustainable capital flows.
October 24, 2022
As borrowing slowed, frontier market debt dipped to $3.5 trillion in Q2 2022—still $480 billion above pre-pandemic levels. Helped by economic recovery in an inflationary environment, the FM debt-to-GDP ratio edged down to 103% in Q2 2022.
October 11, 2022
In light of the 2022 Annual Meetings of the International Monetary Fund and World Bank Group, this letter sets out private sector perspectives on growing challenges to debt sustainability and efforts to enhance the international sovereign debt architecture.
September 14, 2022
Following four quarters of consecutive decline, the global debt-to-GDP ratio is edging back up, approaching 350% of GDP in Q2 2022. We expect the global debt ratio to reach 352% of GDP by end-2022.
June 21, 2022
Successful investors relations programs (IRP) feature direct communication between sovereign borrowers and market participants. The IIF Best Practices for Investor Relations help define the types of formal communication channels available to country authorities and guide the establishment of this connection with market participants.
June 21, 2022
The Institute of International Finance welcomes the opportunity to respond to the House of Commons International Development Committee’s inquiry on debt relief in low-income countries. We commend the Parliament for taking this step in investigating this important issue.
May 18, 2022
Total global debt rose by $3.3 trillion in Q1 2022 to a new record of over $305 trillion-mostly due to China and the U.S.
April 28, 2022
The rapid buildup in sovereign debt levels over the past 15 years has greatly increased the risk of further debt strains—especially in highly-indebted developing countries—as global rates climb; higher food and energy prices also hurt; Timely sovereign debt workouts are a challenge: studies suggest that official creditors are slower to coordinate in resolving arrears than private creditors—concerning, as a large portion of low-income countries’ debt is owed to official creditors; The updated Principles for Stable Capital Flows and Fair Debt Restructuring offer an effective framework for debt crisis prevention and resolution, highlighting the best market-based practices to promote sustained market access.
April 28, 2022
The Principles for Stable Capital Flows and Fair Debt Restructuring are voluntary guidelines offering an effective framework for sovereign debt crisis prevention and crisis resolution to promote sustained market access.