From vulnerability to resilience: A SIDS minilateral on debt pause clauses, debt swaps and resilient sovereign finance

Climate-vulnerable countries must find ways to invest in resilience and transformation without worsening debt vulnerability. This action-oriented SIDS minilateral will examine how debt pause clauses, debt-for-resilience swaps and risk-transfer instruments can become standard sovereign financial tools. Drawing on Barbados and other early adopters, finance ministries, regional risk pools, MDBs, creditors and market participants can help move beyond showcasing precedents to identifying practical commitments on borrower demand, standard terms, trigger support, portfolio adoption and guarantee capacity.