The sovereign finance landscape is undergoing significant changes. Many low-income countries continue to face high risks of debt distress and crisis. Shifts in donor countries’ priorities have resulted in reduced grant financing, leading to increased borrowing needs in many cases. China remains a major bilateral lender, but net flows from China have reversed in recent periods. Continued uncertainty regarding tariffs, commodity prices, and geopolitical tensions further complicates the situation. Simultaneously, many developing countries have begun to rely more heavily on domestic rather than external borrowing.[…]