Amid growing recognition of the limitations of the current sovereign debt architecture, this paper reviews renewed international efforts to establish a multilateral sovereign debt restructuring mechanism.
This paper, part of UNU-CPR's Reimagining Global Economic Governance series to mark the Fourth International Conference on Financing for Development (FfD4), examines the renewed momentum for establishing a multilateral sovereign debt restructuring mechanism. It outlines key historical milestones and evaluates a range of proposals, from UN institutions, Member States, civil society and the IMF, aimed at creating a more predictable, transparent and equitable debt restructuring process.
The paper also assesses recent political developments, including the negotiations leading up to the 2025 FfD4 conference and the outcome document, the Compromiso de Sevilla, which, while omitting explicit support for a multilateral mechanism, leaves open a pathway for further dialogue within the UN system.
Read the paper here.
Suggested citation: Franczak Michael, Passarelli David and Khatoon Irfana. Foundations for a Multilateral Sovereign Debt Mechanism : UNU-CPR, 2025.
