Lazard’s Sovereign Advisory team, which has served as the sole financial advisor to most countries facing debt distress since 2020, shares what they’ve learned from helping countries navigate the shocks of COVID-19, the Russia/Ukraine war and global monetary tightening.
The 2020-2025 Sovereign Debt Crisis: What have we learnt and what lies ahead?
Lazard
Research
6 Pages
Key Takeaways
Frontier economies remain fragile: Many are now more vulnerable than before and just one external shock away from renewed distress.
Debt restructuring frameworks worked—barely: Though existing tools functioned, they revealed serious flaws, especially around the complexity of creditor groups and hidden liabilities.
New financial instruments are gaining ground: State-contingent instruments and clawback clauses are becoming more common as creditors seek more flexibility and fairness.
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