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Assessment of Debt Restructuring Operations in Commonwealth Small States

image of Assessment of Debt Restructuring Operations in Commonwealth Small States

An increase in external shocks, international terrorism and natural disasters over the past two decades has led to unsustainable debt burdens in small and vulnerable states, resulting in debt restructuring programmes.

This paper highlights the concerns of Commonwealth small states about their growing debt burden and the emerging challenges to their overall debt sustainability. It pinpoints the factors that lead to debt, the hurdles involved with debt restructuring and the weaknesses involved in debt management. It offers key lessons learned based on the experiences of seven small Commonwealth countries that have restructured their debts: Antigua and Barbuda, Belize, Dominica, Grenada, Jamaica, St Kitts and Nevis, and Seychelles.

English

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Summary

This study seeks, in particular, to highlight the concerns expressed by small developing Commonwealth states about their growing debt burdens and the emerging challenges to their overall debt sustainability. At the end of 2013, 14 of the 28 Commonwealth small states (CSSs) had debt-to-gross domestic product (GDP) ratios exceeding 60 per cent. All three CSSs with debt levels exceeding 100 per cent of GDP are situated in the Caribbean.

English

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