Debt Restructuring challenges

 Official creditor coordination: Common Framework (CF): slow processes. How to do non-CF cases: Paris Club plus? Light bilateral coordination? Entirely separate? Sri Lanka a key test case.

 Official-Private coordination. First mover issues: Some official creditors want private sector to provide debt relief first, which may take longer and delay debt restructuring implementation.

 Consensus missing on key technical issues. E.g., burden sharing (the perimeter of claims to be treated; what constitutes "comparability of treatment“); and calculation of the repayment envelope.

 Information sharing: Creditors requesting full information on debt treatment and early access to information in the Fund DSA (which cannot typically be shared before Board endorsement).

 Missing instruments? Difficulty in specifying state-contingent instruments to handle uncertainty