Addressing the Financing and Debt Challenges of Commonwealth Small States

Debt burdens in Commonwealth small states have grown rapidly within the last decade, particularly in the Caribbean, and are now at unsustainable levels. This discussion paper outlines four Commonwealth proposals to help address the debt and financing challenges of small states: debt swaps for climate change adaptation and mitigation; vulnerability as a criterion for access to concessional resources; counter-cyclical Loans to mitigate debt accumulation and growth challenges; and resilience building as a policy condition for IFI lending.