Design Choices for Debt Sustainability

The report proposes replacing rigid fiscal rules in emerging markets with flexible debt anchors embedded within a comprehensive fiscal regime. It advocates for enhanced transparency and the establishment of independent fiscal councils to ensure long-term debt sustainability and resilience against shocks.

• The report recommends transitioning from rigid, rules-based fiscal frameworks to a flexible, regime-based framework to address the complexity and instability caused by current rules in emerging markets.
• To ensure a cohesive framework that balances discipline with adaptability, debt anchors should be integrated into a broader fiscal policy regime that includes independent evaluations, fiscal strategies, and defined goals.
• The report emphasizes the need for increased transparency, accountability, and the use of independent bodies, such as fiscal councils, to advise policy-makers and assess fiscal risks.

APA

Wiedenbrüg,, Y. H. M. (2025). Design Choices for Debt Sustainability. International Institute for Sustainable Development. https://www.iisd.org/publications/report/design-choices-debt-sustainability

Chicago

Wiedenbrüg,, Yanne Horas,Fernando Morra,Anahí. Design Choices for Debt Sustainability. International Institute for Sustainable Development, 2025. https://www.iisd.org/publications/report/design-choices-debt-sustainability.

Wikipedia

{{cite report |last1=Wiedenbrüg, |first1=Yanne Horas,Fernando Morra,Anahí |title=Design Choices for Debt Sustainability |publisher=International Institute for Sustainable Development |date=24 June 2025 |url=https://www.iisd.org/publications/report/design-choices-debt-sustainability |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wiedenbrg2025design, author = {Wiedenbrüg,, Yanne Horas,Fernando Morra,Anahí}, title = {{Design Choices for Debt Sustainability}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = jun, url = {https://www.iisd.org/publications/report/design-choices-debt-sustainability}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }