October 23, 2024 | Washington, D.C. The Global Sovereign Debt Roundtable (GSDR) convened today in Washington to address the growing challenges of global debt and to advance discussions on debt restructuring. Co-chaired by IMF Managing Director Kristalina Georgieva, World Bank President Ajay Banga, and Brazilian Finance Minister Fernando Haddad, the roundtable emphasized speeding up restructuring processes and fostering cooperation between creditors and debtors.
The third GSDR Cochairs Report, released after the meeting, highlights progress made in recent months. Key achievements include debt agreements for Ghana in January and Zambia in March. While the timeline for restructuring has improved in some cases, delays persist. Ghana's process, for example, took eight months to reach its first IMF review, far longer than the 2-3 months typical in the past.
The discussions underscored the importance of transparent coordination between creditors to ensure fair treatment across both private and official lenders. Enhanced transparency in assessing comparability of treatment (CoT) was a focal point, aiming to streamline parallel negotiations.
Climate-related debt solutions were also discussed, though the meeting concluded that initiatives like debt-for-climate swaps are not yet viable for large-scale use. As global debt rises, the GSDR’s efforts remain critical in addressing these vulnerabilities and exploring new solutions for debt sustainability.
The roundtable continues to play a key role in advancing cooperation among debt stakeholders, offering hope for countries facing overwhelming debt burdens.
