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Facing major fiscal and balance-of-payments headwinds, Ghana embarked on a comprehensive restructuring of its sovereign debt in December 2022.It was assessed that to return to sustainability, Ghana’s public debt should decline from nearly 90 percent of GDP to 55 percent of GDP with significant debt ...

Having its public debt written off as part of the Heavily Indebted Poor Countries initiative in 2005, Zambia welcomed significant investment in the late 2000s, particularly from Chinese state-owned banks, to propel economic development and diversify its economy beyond natural resources. While these ...

As the largest bilateral lender to developing countries, China’s involvement in efforts to help countries in debt distress achieve debt sustainability is very important. However, China has often been criticized for being slow to respond to those challenges due at times to some strategic motives. Fiv...

This paper addresses a critical flaw in the international financial system: the failure to address the inherent asymmetry between countries that issue reserve currencies and those that do not, leaving the latter vulnerable during systemic liquidity crises. We propose an IMF-managed Emerging Market F...

Experience suggests that the potential inherent in crises has been oversold. Countries have experienced “good” crises, which unlocked policy actions. The positive outcomes that followed were the result of a congruence of enabling factors. In most instances, countries hit by a crisis are ill-prepared...