Emerging Markets Special Topic: The Evolving EM Sovereign Debt Restructuring Landscape

There has been much discussion in the last year over the inability of the existing sovereign debt restructuring architecture to deal with a new wave of sovereign restructurings in a world where China is now the largest bilateral creditor. The end of more than a decade of easy money and global shocks have lead several countries into default and bond markets have priced out market access for a host of others. This has led to a problem of increasing needs to restructure EM sovereign debt, but a larger cast of creditors and no clear restructuring rule-book are causing delays, which have economic and societal costs.  The G20’s Common Framework (CF) aimed to get creditors together, but has stalled for many countries. With a hamstrung effort at new rules, and clear risks of more sovereign stress to come, there are many proposals for ways to improve or fully revamp the debt restructuring architecture. In this podcast, we take a look at the main issues that are troubling the current sovereign restructuring landscape, and review some of the proposed solutions.

Speakers:

Jonny Goulden, Emerging Markets Strategist Ben Ramsey, Emerging Markets Strategist 

This podcast was recorded on 16 June 2023.

This communication is provided for information purposes only. Institutional clients can view the related report https://www.jpmm.com/research/content/GPS-4420237-0

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