Sovereign Debt
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Sovereign Debt
Overview
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Blogs
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Debt Management
Overview
Public debt, or sovereign debt, is an important way for governments to finance investments in growth and development. However, it is also critical that governments are able to continue servicing their debt and that their debt burden remains sustainable. Entering into debt distress is often a painful process, which may threaten macro-economic stability and set back a country’s development for years. Supporting member countries in managing debt risks and resolving debt distress is therefore at the heart of the IMF’s work. This work takes multiple forms.
The IMF’s analytical work helps identify sovereign debt risks and provides policy advice on how to address these risks at an early stage. Jointly with the World Bank, the IMF fosters debt transparency and supports countries in strengthening their capacity to report and manage their public debt. Technical support to member countries on formulating a debt management strategy and developing their local currency bond markets are at the core of such assistance that promotes a prudent debt structure and adds resilience to withstand economic shocks.
Countries with high debt vulnerabilities need to tackle them through a combination of adjustment and measures to restore growth. An IMF-supported program can facilitate that adjustment, but the IMF can only lend to a member if its debt is sustainable. There are cases where debt is unsustainable, even taking the adjustment efforts into account. If a member country enters into debt distress, only the country’s government can decide whether to solve this by negotiating a debt restructuring with its creditors. An IMF-supported program can support a member in the context of a debt restructuring by providing sound economic policies and new financing, enabling the return to macroeconomic viability. The IMF is also lending its support to improving the international architecture for sovereign debt restructurings, which is critical to enable faster and more effective debt reduction.
Publications
Sri Lanka’s Sovereign Debt Restructuring: Lessons from Complex Processes
The Role of IMF Arrangements in Restoring Access to International Capital Markets
Global Sovereign Debt Roundtable: Cochairs Progress Report
Staff Guidance Note on Information Sharing in The Context of Sovereign Debt Restructurings
Review of the Debt Sustainability Framework For Market Access Countries
Staff Guidance Note on the World Bank-IMF Debt Sustainability Framework for Low-Income Countries
Staff Guidance Note on the Sovereign Risk and Debt Sustainability Framework for Market Access Countries
Modification to the Transparency Policy
Policy Papers on Debt-Sustainability in Low-Income Countries
Review of the Debt Sustainability Framework for Low-Income Countries
The Common Framework: Utilizing its Flexibility to Support Developing Countries’ Recovery
World Bank Group and International Monetary Fund Support for Debt Relief under the Common Framework And Beyond
Africa Faces Mounting Risks Just as Growth Gains Take Hold
April 23, 2026
To weather the shock, policymakers should ensure that any near-term measures are time-bound and targeted at the most vulnerable, and maintain the focus on medium-term development objectives
How the Middle East War Has Affected Oil Exporters and Importers
April 22, 2026
Countries face vastly different exposure to higher oil prices and supply uncertainty, shaped by whether they import or export, and how much policy space they have to respond
The Middle East War Will Have an Uneven Impact on the Western Hemisphere
April 17, 2026
Impact on economic activity will vary across countries, but inflation will rise for all
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