US, China still committed to global debt efforts, IMF strategy chief says

Core Insights - The Global Sovereign Debt Roundtable highlighted the lack of transparency regarding commercial bank loans, complicating debt restructuring for developing countries [1][5][8] - A progress report from the IMF, World Bank, and G20 president South Africa emphasized the need for continued efforts to address high debt vulnerabilities, particularly in low-income countries [2][3] Debt Levels and Vulnerabilities - Debt levels in low-income countries and emerging economies have stabilized but remain higher than pre-COVID-19 levels, with some countries particularly vulnerable [3] - Many countries are facing significant debt-service challenges, which are crowding out essential spending on education, health, and infrastructure [3] Policy and Reform Needs - Recent global policy shifts and cuts in foreign aid have exacerbated challenges, necessitating domestic reforms in debtor countries to enhance growth and address rising domestic debt vulnerabilities [4] Debt Restructuring Efforts - Participants agreed to enhance debt restructuring processes, focusing on accelerating the restructuring of non-bonded commercial debt and improving transparency [5][7] - The continued involvement of the U.S. and China in discussions reflects their commitment to addressing high debt levels affecting developing countries [6][8] Transparency Concerns - Transparency regarding non-bonded debt remains a significant concern, as some countries still face bank exposures that hinder credit rating improvements [9]