Debt for Development Swaps: An Approach Framework

This note provides a framework for evaluating and enhancing debt swaps.
READ MORE...
Volume/Issue: Volume 2024 Issue 038
Publication date: August 2024
ISBN: 9798400284625
$5.00
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
paperback else
pdf else
epub else
English
Prices in red indicate formats that are not yet available but are forthcoming.
Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Exports and Imports , Public Finance , spending commitment , expenditure efficiency perspective , transparency policy , expenditure program commitment , expenditure commitment , debt sustainability prospect , debt amortization profile , Debt conversion , Debt service , Debt management , Debt sustainability , Global

Summary

The aim of this note is to help stakeholders optimize their decision-making on when, where, and how to use debt-for-development swaps (“debt swaps”), ensuring they bring the intended benefits to all parties involved. It also proposes new approaches to structure these mechanisms, making them less transaction-heavy and more sustainable while maintaining accountability for fulfilling policy and spending commitments. Debt swaps are agreements between a government and one or more of its creditors to replace existing sovereign debt with one or more liabilities1 that include a spending commitment towards a specific development goal. These goals may include nature conservation, climate action, education, nutrition, support for refugees, among others. The spending commitment is often associated with the country's decision to pursue an important development policy.