Global creditors and debtor nations say “significant progress” has been made on individual debt restructuring cases like Sri Lanka, Zambia, and Ghana, according to a report by Reuters.
The report states Global creditors and debtor nations point out that, however, there are still different views with private lenders on the comparability of treatment.
“For Sri Lanka, the financing assurances provided by an ad hoc committee of official creditors (comprising the Paris Club and India, and co-chaired by France, Japan and India) and China, enabled the approval of the Fundsupported program in March 2023.
“Since then, the work has continued toward reaching an agreement in principle with official creditors on specific restructuring terms. In parallel, the authorities have concluded a restructuring of some of the domestic debt and are in active negotiations with Eurobond holders on a restructuring plan,” they said.
The remarks were made in a joint statement issued by the World Bank, International Monetary Fund (IMF) and India, the current president of the Group of 20 (G20) major economies after a meeting of the Global Sovereign Debt Roundtable, held during the annual meetings of the World Bank and International Monetary Fund in Marrakech.
“Discussions have been held on debt service suspension (when requested by the debtor) and treatment of arrears, though a consensus has not yet been reached,” a statement issued by the IMF added.
Further work is needed on restructuring domestic debt and state-owned enterprises (SOEs)and many participants requested discussion on debt transparency, the statement added.
Full report: GSDR cochairs progress report-october 12 2023