|IMF Headquarters in Washington|
- Who can benefit?
- In which situation?
- Who can benefit in which situation?
- What are the lending terms?
- Transparency and timely flow of information: Debtors must give creditors the information necessary for the latter to appreciate the economic and financial information of the sovereign debtor. If the debtor country reaches agreements with individual creditors, it should inform other creditors about it. Creditors, in turn, grant confidentiality of non-public information.
- Close debtor-creditor dialogue and cooperation to avoid restructuring: This includes namely the debtor taking structural economic and financial reforms and the borrower helping with the implementation of such reforms.
- Good faith actions: When a restructuring becomes inevitable, debtors and creditors should engage in a restructuring process that is voluntary and based on good faith. Contractual rights must remain fully enforceable. A creditor committee should serve as intermediary between the debtor and the different classes of creditors. On the debtor side, the country should resume debt service as a sign of good faith, if possible.
- Fair treatment: Affected creditors should be treated fairly and without discrimination, especially as regards the voting process.