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Debt Relief for a Green and inclusive Recovery

Debt Relief for a Green and inclusive Recovery

The G20's Common Framework urgently needs to be revamped to include middle-income countries and allow for comprehensive debt relief by both public and private creditors oriented around a green, inclusive recovery. To avoid a delay of debt restructuring where it is needed, the G20 should encourage all low- and middle-income countries whose debt is considered unsustainable to participate in debt restructuring. The IMF and the World Bank need to swiftly enhance their Debt Sustainability Analysis to account for climate risks and spending needs to scale-up investment in climate resilience and the 2030 Agenda for Sustainable Development. Adequate incentives are needed to ensure that private creditors participate in debt restructuring where needed and bear a fair share of the burden