There have been major developments in the global economy and sovereign debt markets since the Fund’s last stocktaking in 2020. The COVID-19 pandemic necessitated extraordinary fiscal support to economies, leading to a significant increase in government deficits and debt. General government debt levels have stabilized, but risks remain elevated. Financing flows from private creditors to sovereigns declined significantly after 2021, though aggregate flows had recovered by 2024. Domestic sovereign debt levels have increased and within the official sector there has been a shift from bilateral to multilateral financing. […]