This Policy Brief argues for more precise implementation guidelines to increase the efficiency and accelerate sovereign debt restructuring processes, particularly for private sector creditors. The Common Framework's definition of "comparability of treatment" remains vague, contributing to protracted processes. The lack of a clear definition has hindered the effectiveness of the Common Framework in addressing debt crises in many developing or emerging countries. The Common Framework's complexity and heterogeneity of creditors have made it difficult to achieve expeditious processes, sufficient debt relief, and equitable treatment among creditors. The issue of comparability of treatment is critical, as it requires all creditors to be treated similarly and no creditor to benefit from more favorable treatment than others. To address this issue, the Common Framework should provide more precise implementation guidelines to ensure comparability of treatment among creditors.
