Assisting middle-income countries with debt

In the case of middle-income countries faced with acute liquidity crisis, large financial rescue packages have been mobilized to allow debtor countries to face their short-term debt obligations. While the Paris Club provides a framework for a rescheduling of official bilateral debt and the London Club for restructuring of syndicated bank lending, no clear debt restructuring framework has been established to help these countries to negotiate quick debt restructuring with their private creditors, especially bond holders. This complex problem needs further research.