[DOCUMENT] G20 Common Framework
13 November 2020
UK hops on the sovereign green bond bandwagon, at last
25 November 2020

[DOCUMENT] IMF Staff Discussion Note on State-Contingent Instruments

On November 19, the IMF released a paper discussing state-contingent instruments. Those are instruments for which the debt service is tied to an economic variable such as the GDP, exports, or commodity prices. They can be used to provide upside perspectives to investors following a restructuring, or provide instant relief to issuers faced with an economic shock.

They have been used marginally in restructurings (Argentina 2005 & 2010, Greece 2012, Ukraine 2015), and for natural disasters in Grenada and Barbados only. This can be partly explained by data-related issues, especially in emerging markets, as well as pricing difficulties.