Mitigating Sovereign Risks in Market-Access Countries
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Location: G-03
Overview
Market-access countries are navigating an increasingly difficult fiscal and financial environment characterized by tighter fiscal space, elevated borrowing costs, and heightened global uncertainty. Against this backdrop, the panel will explore how policymakers can preserve debt sustainability and maintain market confidence while supporting economic growth and social cohesion. The discussion will focus on the key ingredients of credible, growth-friendly fiscal consolidation, including the role of efficient and equitable fiscal measures, strong institutions and policy frameworks, transparency, and effective stakeholder engagement. It will also examine how effective public debt management can help mitigate financing risks and strengthen resilience, including during periods of market stress. The discussion will provide an opportunity to highlight the forthcoming Public Debt Management Guidelines, which are being updated to reflect changes in the sovereign financing environment since 2014, and their emphasis on sound governance, clear decision-making frameworks and institutional accountability. Drawing on country experiences, including ongoing fiscal consolidation reforms, the panel will highlight practical approaches to sustaining credibility with citizens and markets through sound fiscal policy, prudent debt management, robust governance, and clear accountability frameworks.

