The Debt Discussion:
Additional Resources:
Key Messages:
- Debt-burdened LICs and LMICs, including SIDs, are being forced to choose between prioritizing unsustainable debt repayments and investing in national development.
- A proactive response to surging debt levels will help us move toward a more just global economic system.
- There is no silver bullet for addressing these global debt challenges. But adopting viable, concrete measures is the first step in advancing towards a more development-oriented debt architecture.
- Implementing, operationalizing, and enforcing proposals that lower the high cost of capital for LICS and LMICs is necessary.
- FfD4 must promote the review and reform of international risk weighting frameworks to ensure accurate, comprehensive risk assessments.
- Optimizing existing initiatives like the G20 Common Framework, including through platforms like the Global Sovereign Debt Roundtable, is key to delivering faster, fairer, and more inclusive debt relief for LICs and LMICs.
- To achieve debt sustainability, LICs and LMICs must actively work to scale up transparency, fight corruption, and curb illicit financial flows.