Key open questions about sovereign debt restructurings

We are potentially in the midst of a frontier market sovereign debt crisis, but we do not expect an emerging market debt crisis as larger emerging market sovereigns have demonstrated resilience

» Potentially a large number of defaulting governments but a small amount of overall sovereign debt

» Growing diversity of the creditor base and growing diversity of debt instruments involved

» Would restructurings deliver sufficient debt relief to avoid a protracted period of recurrent debt exchanges?

» Can the speed of resolving restructurings under the Common Framework be improved?

» Will sovereign debt markets evolve fast enough to rise up to the challenges of climate change?