The world’s approach to sovereign debt needs to change - Financial Times
The world’s approach to sovereign debt needs to change - Financial Times
Source: Financial Times
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DW NOTE
The FT calls for sovereign debt reform without noting that current arrangements serve creditor interests perfectly. When Sri Lanka defaulted in 2022, restructuring took 18 months and imposed 30% haircuts on domestic bondholders while multilateral loans stayed whole. The system doesn't need change — it needs someone willing to say which debts won't be repaid and why pretending otherwise costs more than default.