The promise and limits of the new G20 template for debt restructuring

The new G20 debt restructuring roadmap seeks to make resolving sovereign debt issues more efficient, but its rigid approach might actually make future crises worse by limiting the flexibility needed for both creditors and debtors to negotiate effectively. This could have significant implications for global financial stability, especially in regions heavily reliant on international borrowing. While the initiative aims to prevent messy, drawn-out defaults, its inflexibility might end up creating more systemic risks down the line.