Debt sustainability

Since the inception of the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI), considerable debt relief has been provided to a number of HIPCs. Other developing countries have arranged restructuring of their debts with various groups of private and official creditors. Nevertheless, a central issue remains for domestic and international economic policy, namely, how to reduce the occurrence of sovereign debt problems in developing and developed countries and, when their debt burdens become excessive, how to help them restructure their obligations in an effective and fair way that gives them a fresh start. Effective debt resolution is critical to minimizing the economic and social costs incurred by excessive debt accumulation. The history of debt relief and restructuring is replete with examples of the time and costs incurred by the delay in finding a solution.

Sustainable Development Goals:

Partnerships for the Goals