Many low- and lower-middle-income countries are in financial distress or in default. A combination of overborrowing and COVID-related higher fiscal spending has led many low-income countries to experience significant economic and financial distress. Increased debt levels and higher borrowing costs, in part due to global monetary tightening, have forced countries like Ghana, Sri Lanka and Zambia into default, while leaving many others teetering on the edge of a debt default and financial distress. In order to re-establish economic and financial stability, many of these countries will need to restructure their debt and pursue International Monetary Fund-led economic reforms. But this requires bilateral (government) creditors to provide debt relief....
