Some Important Lessons

» Addressing Economic Imbalances

Understanding economic challenges and developing a broad based reform plan to address economic imbalances, strengthen social safety nets as well as promote inclusive and sustainable growth, is vital -- the importance of credible reforms cannot be stressed enough

» Debt Restructuring Must Complement Credible Reforms

A sovereign debt restructuring in isolation is not a panacea for resolving economic imbalances. A debt restructuring must complement a credible reform programme

» Multilateral Support

Multilateral institutions are critical stakeholders that should support a strong reform agenda, via financing, technical assistance and capacity building efforts

Some Important Lessons

» Formulation of a MTDS

Developing a comprehensive Medium Term Debt Management Strategy (MTDS) is vital to assess debt sustainability requirements and assess inherent risks in the sovereign debt portfolio

» Viable Communication Strategy is Vital to Engage all Stakeholders

If a debt restructuring is necessary, engage early in a transparent and orderly manner with all stake holders

» Engage financial and legal advice early

Engagement of competent financial and legal advisors should be sought early and in transparent manner to assist with the formulation of adequate solutions and strategies to engage with creditors. Creditors are stakeholders and interests can be aligned to ensure a country in crisis emerges stronger

» Process Matters

Consensual negotiations based on an open exchange of views and ensuring inter-stakeholder equity (burden sharing) is necessary to build consensus and foster support for critical reforms