Country UpdateMarch 05, 2021
- Costa Rica
- Czech Republic
- Dominican Republic
- El Salvador
- Ivory Coast
- Saudi Arabia
- South Africa
- South Korea
- Sri Lanka
- Trinidad And Tobago
Market Pricesethiopia sovereign
|ETHOPI 6 5/8 12/11/24||93.20||93.70||8.70||812||-1||2024-12-11|
|ETHOPI 6 5/8 12/11/24||93.35||93.85||8.66||807||0||2024-12-11|
Market Mapethiopia sovereign
In November 2020, the G20 countries and the Paris Club agreed on a common framework to deal with LICs with debt problems
The common framework seeks to provide more comprehensive support that goes beyond the pandemic shock
The key differences with the DSSI are that it has no time limitations, and requires both private sector involvement and IMF engagement
Pressure grows on China, as one of the world's main creditors, to enter the DSSI without restrictions
The terms of China's agreements with emerging or frontier nations are extremely aggressive compared to members of the Paris Club
One issue to keep an eye on is the participation of Chinese state banks in the renegotiations, as these entities hold about 75% of the country's total debt
Chinese authorities have spoken with 20 countries about the DSSI, and it has approved relief for an amount close to USD 3 bn for 10 countries
Angola and Zambia are the countries that most urgently need to address a restructu...
Emerging debt continues to be in trouble given current market conditions.
So far debt relief proposals by the G20, IMF and World Bank have only included private creditors on a voluntary basis.
It seems more costly to deal with relief or restructuring of Eurobonds than to advocate for this type of request in bilateral and commercial debt.
Multilateral organizations are also constrained from granting debt relief by its potential impact on their own credit profiles.