Advancing Sovereign Debt Reform:

Developing countries continue to face significant liquidity pressures, with high debt service constraining critical spending programs and limited fiscal space to absorb further shocks. For countries with deeper solvency issues, the delays and uncertainty associated with the Common Framework have discouraged timely debt restructuring. On both fronts, pressures are only likely to intensify as pandemic-era borrowing comes due in a more challenging economic and financing environment.

This strengthens the case for practical near-term reforms that can make a difference for countries facing debt pressures. Building on our April 2026 discussions in Washington, DC, this roundtable aims to identify concrete recommendations for consideration by the international community, including during the UK’s presidency of the G20 next year. What are the most urgent problems to address and the most promising avenues for action? What political economy constraints stand in the way of the proposals that could make a difference, and how can support be built to move these initiatives toward implementation?

The conversation will bring together senior representatives from finance ministries, international financial institutions, academia, and the policy community to identify priorities for action, examine the principal obstacles to progress, and consider the technical and political work needed to advance them.

Guiding Questions

• Our April roundtable identified key political and financing constraints to reform. What progress have participants made since then on consensus-building or technical work for initiatives that could overcome these constraints?
• What near-term steps could the international community take to help countries manage the upcoming repayment hurdle given countries’ limited access to new affordable financing?
• What are the most promising and practical reforms to address some of the key obstacles preventing debt restructurings from being timely, predictable, and effective in restoring debt sustainability?
• What concrete reform initiatives should the UK prioritize during its G20 presidency, and what political or technical work is needed to advance them?