The fund’s Chief, Kristalina Georgieva says the Global Sovereign Debt Roundtable, which includes creditors, borrowers, the International Monetary Fund, the World Bank and Group of 20 (G20) major economies, would release the document soon.

The body, which was set up in February 2023, is slated to hold a closed-door session next Wednesday during the spring meetings of the IMF and World Bank in Washington next week.

"Countries with unsustainable public debt should move proactively to restore sustainability, including in some cases by taking the difficult decision to seek debt restructuring, "Georgieva said in a speech ahead of next week's meetings. Georgieva added that smaller countries could face serious spill over from global trade tensions, which she said would trigger lower growth and rising inflation, but should be working to put their own houses in order, including by addressing high debt burdens and preserving exchange rate flexibility.

Debt issues will likely be overshadowed next week by widespread concerns over the trade war unleashed by United States (US)President, Donald Trump, who has imposed a plethora of tariffs on aluminum, steel and autos, along with a 10% universal tariff on all countries.

The playbook will provide further guidance and direction for finance ministers and central banks, clarifying the processes already in place for debt restructuring, a source familiar with the document said. "It's another tool to help policy makers navigate the complexities of the process," the source said.

Executive Director of Jubilee USA Network, coalition of religious, development and advocacy groups, Eric LeCompte welcomed Georgieva's renewed push for preemptive debt restructurings before countries got into deeper trouble. He said the tsunami of tariffs imposed by the Washington that were met with countermeasures from other countries, along with prospects for rising inflation, continued high debt levels and downgraded growth prospects threatened to hit middle-income countries particularly hard and could worsen debt issues.

He said debt experts were particularly worried about countries in Sub-Saharan Africa and parts of Asia, but even countries like South Africa, India and the Philippines faced challenges given their exposure to tariffs.

---Reuters---