Sovereign debt restructurings can drag on when creditors lack clear rules for determining who gets paid first. BWC Advisory Council Member Reza Baqir considers how uncertainty around creditor seniority can prolong negotiations and delay debt relief for countries in financial distress. He argues for a more transparent framework that bases preferential treatment on the terms of lending, while protecting genuine leaders of last resort such as the IMF. The proposed approach would bring greater clarity and consistency to future sovereign debt restructurings.

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All views expressed by members are their own and not reflective of the views of the Bretton Woods Committee.