Debt Swaps: Go Big or Go Home - the View of the Borrower

Sovereign debt management during times of economic distress can be particularly painful for small states. In some cases, capacity constraints have prevented these countries from institutionalising debt management grounded in sound macroeconomic and monetary policies. In other cases, these countries have borrowed at high cost and high risk, banking on high returns that were then eroded by economic- and climaterelated shocks. The climate crisis, unlike others, is persistent and requires ongoing attention.