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.
The IIF s new report developed with McKinsey Financing the Net-Zero Transition: From Planning to Practice examines how financial institutions are rising to the transition finance challenge, as they seek to turn transition plans into tangible emissions reductions financing actions.
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.
This week, Clay reflects on major points of the recent IIF Annual Membership Meetings.
This week, Clay is joined by IIF President and CEO Tim Adams as they discuss a variety of issues surrounding global policy.
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.
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.
Following a series of discussions with the Insurance Working Group (IWG), the IIF submitted its response to Phase 2 on January 21, 2022.
In November, the IIF responded to the European Commission’s public consultation on enhancements to public/private partnerships and cooperation across the EU for tackling financial crime.
In this paper, the Institute of International Finance and Deloitte Transactions and Business Analytics LLP highlight four areas of focus where continued reform could build on the good work and progress already underway globally to help improve the effectiveness of the anti-financial crime framework.
The 2021 Principles Consultative Group (PCG) report features an interim report on updating the Principles for Stable Capital Flows and Fair Debt Restructuring based on contributions from PCG members. Changes in sovereign debt markets over the past decade, lessons learned from recent debt restructurings, the emergence of the DSSI and Common Framework, and the surge in investor interest in ESG considerations all underscore the need to update the Principles.
This report takes stock of emerging public sector and banking industry practices on the topic of Scenario-based Climate Risk Measurement (SCRM). The Institute of International Finance (IIF) conducted a stock-taking exercise with 20 large member banks to gather industry experiences on SCRM exercises.
Could a Chinese CBDC displace the dollar as the global reserve currency, undermine the U.S. sanctions regime or provide the Chinese government with the ability to increase surveillance on citizens?.
The IIF has prepared a brief paper on our expectations for the Biden administration’s approach to financial regulatory policy.
The Institute of International Finance (IIF) and the Global Financial Markets Association (GFMA) have published a joint paper – "2021 Priorities for Strengthening Global Operational Resilience Maturity in Financial Services" – that sets out how to continuously improve and strengthen the level of operational resilience in the financial system.
The objective of this paper is to communicate global industry views on the rapidly evolving set of supervisory and regulatory approaches to climate-related and environmental risks facing the banking and insurance sectors.
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.
Building on the IIF’s previous work in this area, the paper endeavors to address the continued criticality of improving economic and financial crime risk management by facilitating the increased sharing of information on financial activity linked to crime and terrorism.
The IIF welcomes the Bank of England discussion paper Central Bank Digital Currency: opportunities, challenges and design, published on March 12, 2020, which provides an important contribution to this emerging field and identifies and fosters discussion on key issues.
The Institute of International Finance (IIF) on February 11th conveyed its financial services regulatory priorities for engagement with the new European Commission in a letter to Executive Vice-President Valdis Dombrovskis.
In a 2019 survey, the IIF Sustainable Finance Working Group (SFWG) polled member firms on their views: a significant majority agreed that industry alignment around simplifying terminology and product names into a few broad categories could greatly advance the goal of scaling up sustainable finance.
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.
This report, produced under the auspices of the IIF SFWG, aims to provide insight on current "leading practices" among financial firms in implementing TCFD recommendations, providing a snapshot of "what good disclosure looks like." These examples should help prompt discussion within the industry and inform dialogue with regulators and supervisors on how to achieve the goals of the TCFD, particularly on appropriate pricing of climate-related risks and financial stability.
Please find our latest U.S. Regulatory Update, covering the Federal Reserve’s Semiannual Monetary Policy Report, Congressional Libra Hearings, Stress Testing and CCAR results, and Capitol Hill updates, among other topics.
A new set of private sector principles to enhance transparency in sovereign debt markets.
We are pleased to invite comments and suggestions on the latest draft of the voluntary Principles for Debt Transparency.? Feedback is welcomed from all stakeholders, including private sector financial firms; official sector bodies including international organizations, finance ministries and debt management offices; and civil society.
The Principles for Stable Capital Flows and Fair Debt Restructuring incorporate voluntary, market-based, flexible guidelines for the behavior of sover.
Early this year we identified the Lira as significantly overvalued , given last year's policy mix that widened the current account deficit. However.
The Principles incorporate voluntary, market-based, flexible guidelines for the behavior of sovereign debtors and private creditors with the aim of pr.
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.
The Group of Trustees of the Principles for Stable Capital Flows and Fair Debt Restructuring held its 2015 Annual Meeting in Lima, Peru, to review the.