Navigating Debt Deferral and Incentives: Balancing Official and Private Sector Roles

The chapter delves into the complexities of debt deferral and the incentives required for effective financial solutions, emphasizing the need to differentiate countries based on liquidity needs and reforms. Discussions revolve around the Debt Service Suspension Initiative (DSSI) and whether a universal or targeted approach is more effective in providing relief to countries impacted by COVID-19. The chapter also explores the challenges posed by the profit-driven nature of the private sector and the importance of data-driven analysis in creating sustainable financial assistance policies.