Global Sovereign Debt Roundtable Report Looks At Sri Lanka Positively

COLOMBO (News 1st); The Global Sovereign Debt Roundtable (GSDR) issued its second co-chairs progress report, highlighting significant advancements in the international debt agenda.

The report underscores key developments, including recent agreements between countries and their creditors, as well as ongoing discussions on debt restructuring.

In January 2024, Ghana reached an agreement with its official bilateral creditors, marking a crucial milestone in debt resolution. Similarly, in March 2024, Zambia successfully negotiated with representatives of its Eurobond holders, demonstrating progress in addressing its debt obligations. Discussions on debt restructuring are also underway for other nations, including Sri Lanka and Suriname.

The GSDR has played a pivotal role in facilitating dialogue among stakeholders, fostering a better understanding of complex debt issues. It has facilitated consensus-building on improving processes for future cases, focusing on aspects such as comparability of treatment and restructuring timelines tailored to each country's circumstances.

Regarding restructuring timelines, recent months have seen notable progress. The time required to complete crucial steps before the first review of IMF programs has decreased significantly.

For instance, Chad took 12.4 months to reach this stage in 2022, while Zambia achieved it in 10.4 months in July 2023. Sri Lanka and Ghana also made strides, achieving this milestone in 8.8 months in December 2023 and 8 months in January 2024, respectively.

Ongoing restructuring efforts have continued, both within the Common Framework (CF) - as seen with Zambia and Ghana - and outside it, involving Sri Lanka and Suriname.

Progress has also been observed in restructuring processes involving debt owed to official bilateral creditors, further reducing timelines before the first IMF program review.

Notably, progress in these key steps has led to significant improvements in overall restructuring timelines, highlighting the effectiveness of collaborative efforts in addressing sovereign debt challenges.

The report emphasizes the importance of continued cooperation and dialogue among stakeholders to achieve sustainable solutions for sovereign debt issues worldwide.