Study on Managing Sovereign Debt in Times of Crisis: Insights from the COVID-19 Pandemic and Lessons for the Future

The COVID-19 pandemic created unprecedented debt stresses for developing countries, particularly in sub-Saharan Africa, where 16 nations were already at high risk of or in debt distress. Debt managers faced a combination of volatile market conditions, limited fiscal space, and increased operational risks resulting from the transition to remote work.

• The COVID-19 pandemic caused historic and unusual debt stresses for developing countries, characterized by a sudden rise in government borrowing needs, economic downturns, strained market conditions, and operational disruptions.
• Debt managers in sub-Saharan Africa faced severe constraints during the pandemic due to pre-existing vulnerabilities and limited fiscal space compared to the 2008/09 global financial crisis. Specifically, 16 countries were already in debt distress or at high risk of it before the pandemic began.
• The pandemic introduced significant operational risks for debt management offices (DMOs), as the shift to remote working arrangements altered the control environment and made risk management more difficult than in traditional office settings.

APA

FSD Africa (2023). Study on Managing Sovereign Debt in Times of Crisis: Insights from the COVID-19 Pandemic and Lessons for the Future. https://fsdafrica.org/publication/study-on-managing-sovereign-debt-in-times-of-crisis-insights-from-the-covid-19-pandemic-and-lessons-for-the-future-chapter-3/

Chicago

FSD Africa. Study on Managing Sovereign Debt in Times of Crisis: Insights from the COVID-19 Pandemic and Lessons for the Future. 2023. https://fsdafrica.org/publication/study-on-managing-sovereign-debt-in-times-of-crisis-insights-from-the-covid-19-pandemic-and-lessons-for-the-future-chapter-3/.

Wikipedia

{{cite report |author=FSD Africa |title=Study on Managing Sovereign Debt in Times of Crisis: Insights from the COVID-19 Pandemic and Lessons for the Future |date=12 August 2023 |url=https://fsdafrica.org/publication/study-on-managing-sovereign-debt-in-times-of-crisis-insights-from-the-covid-19-pandemic-and-lessons-for-the-future-chapter-3/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafrica2023study, author = {{FSD Africa}}, title = {{Study on Managing Sovereign Debt in Times of Crisis: Insights from the COVID-19 Pandemic and Lessons for the Future}}, institution = {FSD Africa}, year = {2023}, month = aug, url = {https://fsdafrica.org/publication/study-on-managing-sovereign-debt-in-times-of-crisis-insights-from-the-covid-19-pandemic-and-lessons-for-the-future-chapter-3/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }