Global Sovereign Debt Roundtable 3rd Cochairs Progress Report (English)

The IMF and World Bank have proposed a three-pillar approach to help address current liquiditychallenges. This three-pillar approach, presented in a joint Bank-Fund non paper, combines structural reforms to boost growth and jobs and mobilize domestic resources, supported by capacity development (Pillar 1); adequate financial support, including from international financial institutions (Pillar 2); and actions to reduce debt servicing burdens, including through greater use of risk-sharing instruments by external partners, where relevant, to incentivize higher inflows from private creditors (Pillar 3). Countries, whose debt is sustainable, but experiencing temporary liquidity pressures, as assessed through debt sustainability analysis, and that are undertaking or committed to structural and fiscal reforms, could make use of this three-pillar approach. While the policies and instruments under each of these pillars are available to all countries, and constitute a “menu of options”, the approach would activate a countryspecific package, tailored to the country's unique circumstances and needs.