Pressure Mounts at IMF Against Blueprint for EM Debt Reworks
- Measures announced at spring meetings may mark turning point
- Common framework left nations lingering in years-long defaults
A street market area in Lusaka, Zambia.
Photographer: Luke Dray/BloombergThis article is for subscribers only.
World financial leaders are pushing to overhaul a system for sovereign debt restructurings that has left poor countries locked out of capital markets as China’s emergence as a key player upends traditional negotiations.
How to fix the so-called common framework initiative, hatched during the pandemic to help poor countries rework their debt, was among the top issues debated during International Monetary Fund’s spring meetings, which just wrapped in Washington DC.