Strengthening the Global Sovereign Debt Roundtable

The policy brief argues that the G20's Common Framework for Debt Treatments (CF) is operationally deficient, leading to protracted restructuring processes for low-income countries. It recommends that the South African G20 presidency prioritize the suspension of debt service payments upon CF requests, the expansion of climate-resilient debt clauses (CRDCs) to all low- and middle-income countries, and the creation of G20 working groups to explore market-based solutions—such as a modern 'Brady Plan'—and statutory reforms to ensure private sector participation in debt workouts.

• The G20's Common Framework for Debt Treatments (CF) is currently failing to provide necessary long-term relief due to slow implementation, lack of creditor coordination, and unclear timelines. This is evidenced by the cases of Zambia and Chad, where it took at least two years to reach agreements with creditors.
• High debt service payments are severely limiting the fiscal capacity of developing countries, especially in Africa, to invest in health, education, and climate action. African nations are disproportionately affected, representing 20 of the 34 low-income countries currently in or at high risk of debt distress.
• The authors propose that the South African G20 presidency should advocate for the immediate suspension of all debt service payments when a country requests CF treatment. To pressure creditors for swift resolution, this suspension should not be net present value neutral.
• Climate-resilient debt clauses (CRDCs) should be scaled up for all low- and middle-income countries, rather than being limited to small states. Proposed triggers for these clauses include wildfires, landslides, floods, hurricanes, droughts, and health pandemics.
• Private creditors now hold over 25% of external debt stock, compared to 10% in 2010, and their servicing costs account for more than two-thirds of total debt service payments for low-income countries. The document suggests a market-based solution similar to the 1980s Brady Plan, replacing high-cost debt with low-cost sovereign bonds with longer maturities.
• The G20 should coordinate statutory approaches to sovereign debt restructuring across jurisdictions, specifically in the UK and New York, to prevent private creditors from shifting debt issuance based on profitability laws.

APA

Coulibaly, B., & Abedin, W. (2024). Strengthening the Global Sovereign Debt Roundtable. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2024/09/SAIIA_PN_3_G20DebtGSDR.pdf

Chicago

Coulibaly, Brahima, and Wafa Abedin. Strengthening the Global Sovereign Debt Roundtable. South African Institute of International Affairs, 2024. https://saiia.org.za/wp-content/uploads/2024/09/SAIIA_PN_3_G20DebtGSDR.pdf.

Wikipedia

{{cite report |last1=Coulibaly |first1=Brahima |last2=Abedin |first2=Wafa |title=Strengthening the Global Sovereign Debt Roundtable |publisher=South African Institute of International Affairs |date=3 September 2024 |url=https://saiia.org.za/wp-content/uploads/2024/09/SAIIA_PN_3_G20DebtGSDR.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{coulibaly2024strengthening, author = {Coulibaly, Brahima and Abedin, Wafa}, title = {{Strengthening the Global Sovereign Debt Roundtable}}, institution = {South African Institute of International Affairs}, year = {2024}, month = sep, url = {https://saiia.org.za/wp-content/uploads/2024/09/SAIIA_PN_3_G20DebtGSDR.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }