CAMBRIDGE The world is in the midst of a debt crisis. A recent report estimates that 61 emerging-market and developing economies nearly one-third of the International Monetary Funds member countries are facing debt distress. The G20s Common Framework for Debt Treatments, which aims to help low-income countries restructure their sovereign debts, was supposed to prevent this crisis from spiraling out of control. But progress so far has been slow and uneven.
Many of the worlds debt-distressed countries are in Africa. Chad, for example, restructured its debt in 2021, the first to do so under the Common Framework. Zambia defaulted on its foreign debt in 2020 but has not convinced its creditors to agree on how to restructure its debt, partl…
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