Restructuring is typically the last resort used to deal with unsustainable sovereign debt. It can be an extension of maturity, a reduction in coupon payments, discounting the face value of debt, and/or a mixture of these, notably to free up fiscal space for sustained growth and development. Over the past three decades, the Multilateral Development Banks (MDBs) and the International Financial Institutions (IFIs) have applied one or a combination of these tools to restructure the external debts of developing and low-income countries through the Heavily Indebted Poor Countries (HIPC) Initiative, Multilateral Debt Relief Initiative (MDRI), and the Debt Service Suspension Initiative (DSSI). […]