World Bank President Ajay Banga underscored the urgent need for greater transparency in sovereign debt restructuring, emphasizing that clearer reporting and accountability are essential to rebuilding trust between creditors and debtors.
Speaking on Friday, Banga said the Bank is working closely with the IMF and G20 partners to accelerate restructuring efforts under the G20 Common Framework for Debt Treatments — a process often criticized for delays and lack of coordination.
📊 Key Focus Areas:
- Expanding the Debtor Reporting System to cover all G20 economies for improved data access and clarity.
- Advancing domestic revenue reforms to strengthen fiscal resilience in emerging markets.
- Enhancing liability management and blended financing to reduce default risks and support sustainable growth.
💡 Why It Matters:
Over 50 low- and middle-income countries are now in or near debt distress. Banga’s push for transparency marks a critical step toward creating a more predictable, cooperative, and fair global financial architecture.