Sovereign Debt Sustainability

Front matter

p

Routledge International Studies in Money and Banking

SOVEREIGN DEBT SUSTAINABILITY

Introduction

1.2 The Colonialist Foundation 10

1.3 The Post-Independence Landscape 12

1.4 Multilateral Debt Treatment Under Review 18

1.5 The Heavily Indebted Poor Countries (HIPC) Initiative 1996 22

1.6 The Jubilee 2000 Attempt 25

1.7 The Idea of the Sovereign Debt Restructuring Mechanism 27

1.8 The Multilateral Debt Relief Initiative 2006 34

2.2 The Non-Financial Impact of the COVID-19 Pandemic 42 2.3 The Financial Impact of the COVID-19 Pandemic 48

The DSSI, the Common Framework, and the Credit Rating Impasse 3.1 Introduction 54 3.2 The Debt Service Suspension Initiative 2020 56 3.2.1 Structural Issues With the DSSI 59 3.2.2 The Complicated Middle Ground Between Politics and Business 65 vil vi

Contents

3.3 The Potential of the Collective Action Clause 70

3.4 The Credit Rating Impasse 73

3.5 The Common Framework on Debt Treatment Beyond the DSSI 80

Resolving the Credit Rating Impasse: Part One 87 4.1 Introduction 87

4.2 Private Creditor Support 88

4.3 A New Way to (Temporarily) Rate Sovereign Debt 89

4.4 An Advisory Service for Sovereign Debtors 98

Resolving the Credit Rating Impasse: Part Two 102 5.1 Introduction 102

5.2 A New Legal World for Credit Rating Agencies 103

5.3 Areas for Reform 110

5.4 Limitations 116

The Future for Africa 120 6.1 Introduction 120

6.2 Democracy and Autocracy in the African Continent 121

6.3 The Global Battle for Influence in the African Continent 124

6.4 Global Initiatives Competing With Each Other 129

Index 144