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Debt-for-Development Swaps and the Potential Role of the World Bank: Technical Note

The aim of this note is to help stakeholders optimize their decision-making on when, where, and how to use debt-for-development swaps (“debt swaps”), ensuring they bring the intended benefits to all parties involved. It also proposes new approaches to structure these mechanisms, making them less transaction-heavy and more sustainable while maintaining accountability in fulfilling policy and spending commitments. In doing so, it explores modalities for the World Bank Group’s involvement. […]