The Fund’s Framework for Sovereign Debt Restructuring

The purpose of Fund financing: provide financing to assist members in ‘resolving their balance of payment problems’, and help member return to ‘medium term external viability’ through a Fund supported adjustment program under ‘adequate safeguards’ to Fund resources.

▪ In most Fund-supported programs, a combination of policy adjustment and IMF financing catalyzes external financing from public and private sources.

▪ However, in some case, where members with significant indebtedness have lost –or are losing – market access, the catalytic role of Fund financing may not be enough.

▪ In cases where a member’s debt is assessed as unsustainable, the Fund is precluded from lending, unless the member takes steps to restore debt sustainability.

The views expressed herein are those of the presenter and should not be attributed to the IMF, its Executive Board, or its