SOGEI website background

Challenges Ahead

Since the global financial crisis, sovereign debt ratios in advanced and emerging economies have grown to near record highs; while in low-income countries, debt levels have been gradually building since the debt relief of the early 2000s. As global monetary conditions tighten, the burden of debt will grow and rollover risks will increase. And with a more fragmented creditor base, timely and orderly restructurings may become harder to achieve. This panel discussion will explore these risks and consider which policies might enhance crisis prevention and strengthen crisis resolution. It will also consider the extent to which these objectives can be pursued by individual countries or whether multilateral action is required to improve the international architecture. This document is an excerpt of the forthcoming book from Oxford University Press and the IMF that is designed to connect the multiple aspects of sovereign debt policy into one coherent text. For further information please go to our focus: Sovereign Debt: A Guide for Economists and Practitioners