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Building an Effective Sovereign Borrowers’ Club

Even though creditor coordination has long been institutionalized, borrower countries have often been discouraged from sharing information. Creating a mechanism that enables these countries to discuss technical issues, access capacity-building assistance, and coordinate actions would improve debt sustainability. One of the most promising ideas in the Seville Commitment (Compromiso de Sevilla), which heads of state and government adopted in July, is the creation of a platform for borrower countries, supported by existing institutions and facilitated by a United Nations secretariat. This simple but potentially transformative concept could shift the balance of information and influence, which has long favored creditors. […]