联合国亚太经社会(ESCAP)：在努力实现可持续发展目标的同时确保公共债务的可持续性 Securing public debt sustainability while pursuing the Sustainable Development Goals

UnitedNationsESCAPUnitedNationsomicandSocialCouncilDistr.:GeneralomicandSocialCouncilOriginal:English*ESCAP/79/1/Rev.2.B3-00180(E)TP030423EconomicandSocialCommissionforAsiaandthePacificinthsessionBangkokandonline,15–19May2023Item4(g)oftheprovisionalagenda*Reviewoftheimplementationofthe2030AgendaforSustainableDevelopmentinAsiaandthePacificandissuespertinenttothesubsidiarystructureoftheCommission:macroeconomicpolicy,povertyreductionandfinancingfordevelopmentgpublicdebtsustainabilitywhilepursuingtheelopmentGoalsebythesecretariatmaryEconomicactivityinAsiaandthePacificsloweddownconsiderablyin2022andisexpectedtoremainweakin2023,amidhighinflation,aweakglobaleconomyandtheuncertaintycausedbythewarinUkraine.Respondingtohighinflationandrisinginterestratesinadvancedeconomies,monetarytighteninginseveralAsia-Pacificeconomieshasgatheredpacesincethesecondhalfof2022.Sucheconomicconditionshaveimplicationsforthefiscalanddebtpositionsofdevelopingeconomies.Governmentdebtlevelsintheregionhavebeenrising,whichalongwithhigherfinancingcostsandanuncertaineconomicoutlooksuggeststhattheriskofpublicdebtdistresswillbeconsiderableincomingyears.ThisimpliesthatthescaleoffiscalresponsesavailableforpursuingtheSustainableDevelopmentGoalsandforclimateactionarelikelytoremainlimited.However,usingastrategicforesightanalysisthattakesintoaccountclimateandsocioeconomicmegatrends,aswellasSustainableDevelopmentGoalimplementationscenariosunderdifficultmacroeconomicconditions,analysescarriedoutbytheEconomicandSocialCommissionforAsiaandthePacificshowthathigherdebtlevelsarenotnecessarilyabadthinganddonotalwaystranslatetoahigherriskofdebtdistress.Buildingonthisforesightaspect,athoroughexaminationofnationalpublicdebtprofilesrevealsthatdebtsustainabilitydependsonseveralfactors,includingthestrengthofthefiscalpositionanddebtservicingcapacity;thedriversandpurposeofincreasingdebt;thetypeofdebt(domesticversusexternal);thecreditorprofile;andcertainstructural,governanceandinstitutionalaspects.Thereisalsoaneedforalong-term,holisticandforward-lookingapproachtoassessexistingandfuturepublicdebtsustainabilityinAsiaandthePacificthatdulyconsiders,amongothers,nationalGoal-relatedinvestmentneeds;nationalGoalfinancingstrategies;andthesocioeconomicandenvironmentalbenefitsofpublicinvestmentsinthelightofkeymegatrendssuchasclimatechangeandtheageingofsocieties.原报告内容;原报告内容;报告仅限社群个人学习，如需它用他疑问请联系微信。有效万份行业研究、管理方案及其他2.每日分享：6+份行研精选、3个行业主题4.严禁广告：仅限行业报告交流，禁止一切无关信息研究报告、商业计ESCAP9/142B23-00180Withboldpolicyactionsatthedomesticlevelandaspiritofmultilateralismandcollaboration,enhancingfiscalspacetosecurepublicdebtsustainabilityandeffectivelyrespondingtothecommitmentsrelatedtothe2030AgendaforSustainableDevelopmentandclimateactionshouldnotbeanoneroustask.Examplesofdomesticpolicyoptionsforforward-lookingimplementationinclude:increasingfiscalrevenuesthroughbetterandeffectivetaxadministration,abroadeningofthetaxbaseandgreaterrelianceondirectandprogressivetaxationmeasures;improvingallocativeandoperationalefficiencyofpublicspendinganditseffectiveness,includingthroughtheuseofdigitaltechnology;andenhancingpublicdebtmanagement.Theroleoftheinternationaldevelopmentcommunityinstrengtheningandfacilitatingcoordinateddiscussionsamongdebtorsandcreditors,includingfordebtrestructuring,andinacceleratingprogresstowardscommoninternationaldebtresolutionmechanismsandframeworks,shouldnotbeunderestimatedeither.TheCommissionisinvitedtoreviewanddiscussthepolicyideasandforward-lookingsuggestionscontainedinthepresentdocumentandprovidefeedbackandguidancetothesecretariatinthatregardtohelpguideitsforthcominganalyticalworkanditsplanningandpreparationoftechnicalassistanceandfuturecapacity-buildingprojects.MembersandassociatemembersoftheCommissionareencouragedtosharetheirspecificexperiencesandinitiativesontheseissues.I.Introduction1.ThewarinUkraineandacost-of-livingcrisishaveincreasedpovertyandinequalityinAsiaandthePacific,therebydeepeningthesocioeconomicscarsleftbehindbythecoronavirusdisease(COVID-19)pandemic.Historicallyhighinflationisunderminingeconomicstability,whileincreasesininterestratesareraisingthelevelsoffiscalanddebtstressofdevelopingeconomies.Sucheconomicconditionsaremakingitdifficultforcountriestocontinuetoinvestinthetransformative2030AgendaforSustainableDevelopmentforaninclusiveandsustainablefuture.Inparticular,agrowingpost-pandemicpublicdebtoverhangtogetherwithweakeconomicgrowthprospectsandhigherinterestrateshaveconsiderablyincreasedtheriskofpublicdebtdistressintheregion.Asaresult,thescaleoffiscalresponsesavailableforpursuingtheSustainableDevelopmentGoalsandforclimateactionarelikelytoremainlimited.2.Giventhisoutlook,thepresentdocumentsetsoutthecaseforaNewperspectivesonfiscalandpublicdebtanalysisarepresentedtohelpvelopmentGoalswhilemaintainingpublicdebtsustainabilityoverthelongterm.3.Inthepresentdocument,strategicforesightanalysistechniques1areappliedtoexaminetheuseofdebtinastructuredandsystematicway,aswellastoallowforthemodellingoffuturesocioeconomicdevelopmentsonthebasisofscenarioslinkedtothechangingfiscal,monetaryandsocioeconomicesightscenariosdevelopedforsocioeconomicandclimatetrendsandtheirpossiblemitigationthroughSustainableDevelopmentGoalinvestments,presentvariousoveralldebtriskprofilesandcontain1Forinstance,seeUnitedNationsDevelopmentProgramme,GlobalCentreforPublicServiceExcellence,ForesightManual:EmpoweredFuturesforthe2030Agenda(Singapore,2018).2Fordetails,seeEconomicandSocialSurveyforAsiaandthePacific2023:RethinkingPublicDebtfortheSDGs(forthcoming).ESCAP9/14B23-001803evaluationsoftheirsustainabilityrisk.SuchanalysisallowsforbetterpreparationincaseofpotentialdebtdistresseventsandmakesitpossibletofullycapturedevelopmentopportunitiesorientedtowardstheSustainableDevelopmentGoals.Insightsfromthisforesightanalysisareusedtomakepolicyrecommendationsaimedatmoreinclusiveandsustainableeconomicdevelopment.4.Thepresentdocumentprovidesthecontextoftheglobalandregionaltrendsthatarehavinganimpactonthefinancialneedsandresourcesofgovernments.Thisisfollowedbyadescriptionofthecurrentstateofplayintermsoftheavailabilityofdebtresourcestosupportgovernmentfiscaliciesthatcanbeusedtoreducefiscalanddebtdistressbyincreasingfiscalrevenue,improvingtheefficiencyandeffectivenessofpublicspendingandenhancingpublicdebtmanagement.Suggestionsarealsoincludedthatcanhelpcountriesandterritoriesfacingelevatedlevelsofdebtdistresstoeffectivelyengageinsovereigndebtrestructuring.Furthermore,thedocumentcontainssuggestionsonhowtheinternationaldevelopmentcommunitycanstepupitseffortstoassistAsia-Pacificgovernmentsbyacceleratingprogresstowardscommoninternationaldebtresolutionmechanismsandrestructuringframeworks.II.ContextactivityinAsiaandthePacificsloweddownconsiderablyin2022andisexpectedtoremainweakin2023,duetohighinflation,aweakragedthePacificwasestimatedtoreachapproximatelypercentin.Inflationsurgedto7.7percentin2022from3.5percentin2021,amidhighglobalfoodandenergyprices,anditwasexpectedtoremainatanelevatedlevel(6percent)in2023.Thishistoricallyhighinflationisnotonlyunderminingeconomicstabilitybutadverselyaffectinglow-incomehouseholdsmorethanothers,thusworseningthedeepsocioeconomicscarringfromtheCOVID-19pandemic.Therefore,restoringpricestabilityandsafeguardingthevulnerablearenotjustmacroeconomicissues,butcriticalfactorsforachievingthe2030AgendaforSustainableDevelopmentintheregion.6.Respondingtohighinflationintheregion,monetarytighteninginestheconductofmonetarypolicyhasbecomeincreasinglycomplexCentralbanksintheregionneedtobalancemanaginginflationexpectationsamidsupply-drivenfactors,whileminimizingtheadverseimpactsofhigherneedtoremainwaryregardingpressureontheircurrenciestodepreciateinthecontextofregionareexpectedtoremainelevatedin2023.7.Fiscalneedsofgovernmentsfordevelopmentspendingaregrowing.Forexample,fiscalresourcesareneededtocomplementmonetarypolicyintemperinghighinflationbyabatingtherisingcostoflivingthroughtargetedsubsidiesorcashtransferstoshieldpoorhouseholdsfromhighfoodpricesamidtheriskofsocialunrest.FiscalspaceisalsoneededforcountercyclicalGiventhelimitedprogressmadetowardstheSustainableDevelopmentGoalsESCAP9/144B23-00180alswillbeconsiderableandmeetingthoseneedsremainscritical.Atthesametime,financingneedsforclimate-relatedissues,includingmitigationandadaptationaswellaslossesanddamageresultingfromclimate-induceddisasters,arealsoweighingonpublicfinances.III.PublicdebtsituationinAsiaandthePacific8.PriortotheCOVID-19pandemic,in2019,theaveragegovernmentdebt-to-grossdomesticproductratioindevelopingcountriesinAsiaandthePacificreachedan11-yearhighof40.4percent.In2021,itrosefurther,to49.1percent.GovernmentdebtintwothirdsofAsia-Pacificeconomiesisldeficitshigherexpectedtoriseinmanycountriesoftheregionincomingyears.interestpayments,arethemainreasonsbehindtherisingpublicdebttrendsinthoserelyingonexternaldebt,currencydepreciationhasalsocontributedtohigherdebtlevels.Incontrast,pasthigheconomicgrowth,relativetoborrowingcosts,contributedtolimitingthedebtsurgetosomeextent.iaPacificeconomiesstillrelyheavilyeralofficialcreditorsTheAsianDevelopmentBankandtheWorldBankremainthelargestmultilateralcreditorsintheregion.However,theirloanshavebecomelessconcessionalovertime,withtheproportionofconcessionalloansdecreasingfrom51percentofallloansin2008to26percentin2021.Beyondofficialcreditors,theroleofprivatebondholders,suchasinstitutionalandindividualinvestors,isincreasingintheregion’ssovereigncreditorlandscape.SeveralsmallislanddevelopingStatesandlandlockeddevelopingcountrieshaveseenthesharpestincreasesindebtfromChina,predominantlytotheregionsurgednearly12-foldfrom$6billionin2008to$71billionin2021.However,theshareofconcessionalloanswasverylow,accountingforamere4percentofallloans.12.SeveralAsia-Pacificcountries,somewithrelativelyhighlevelsofdomesticdebt,increasedissuancesoflocal-currencygovernmentbondsindomesticmarketsin2020and2021,primarilytofundstimuluspackagesinresponsetotheCOVID-19pandemic.Whilethesebondissuancescanhelpbroadentheinvestorbaseandincreasethedepthandliquidityofdomesticcapitalmarkets,governmentsneedtobewaryoftheincreasingriskofsuddencapitaloutflows,asforeignholdingsofthesebondshavealsoincreasedsince2008.13.TheriskofpublicdebtdistressisrisinginAsiaandthePacific.AccordingtotheDebtSustainabilityFrameworkforLow-IncomeCountries,11countriesintheregionarefacingahighriskofpublicdebtdistress,includingeightsmallislanddevelopingStates.OftheAsia-Pacificeconomiesforwhichsovereigncreditratingsassessedbyagenciesareavailable,18ofthemareclassifiedasbeingbelowinvestmentgrade.Asfiscalanddebtrisks3Ibid.,chapter2.ESCAP9/14B23-001805aredeemedhighintheseeconomies,theytypicallysufferfromhighergovernmentborrowingcosts.14.Amidanurgentneedtofillthefinancinggapofthe2030AgendaforSustainableDevelopmentandclimateambitionsinthenearfuture,itistimeforpolicymakersandtheinternationaldevelopmentcommunitytorethinkthedebt-developmentnexusinaforward-lookingmanner,withaforesight-basedfocusonunderlyingsocioeconomicandclimatemegatrends.4Thereisaneedthigherpublicdebtcanbeapowerfultoolforsustainabledevelopment,ifusedjudiciously.ThepublicdebtthresholdsadvocatedbytheInternationalMonetaryFundandtheWorldBankandusedintheirdebtassessments,whichareassumedtobe“optimal”,areinfacttoolow,andtheycontributetosub-optimaldevelopmentoutcomes.Athoroughexaminationofthepublicdebtprofileofcountriesfrommultipleperspectivesrevealsthatahigherdebtlevelisnotnecessarilyabadthing.Insomecases–forexample,JapanandSingapore–itdoesnottranslateintoahigherriskofdebtdistress.Severalfactorsmatter,suchasthestrengthofthefiscalpositionandthedebt-servicingcapacity;thedriversandpurposeofincreasingthedebt;thecomposition(domesticversusexternal)ofdebt;thecreditorprofile;andcertainstructural,governanceandinstitutionalaspects.Howmuchweightisgiventothesefeaturesinassessingdebtdistressvariesacrosscountriesandinvolvesanelementofjudgment.15.ThereisalsoaneedtorevamptheconventionaldebtassessmenttoolsebtsustainabilityassessmentsThecurrentapproachtopublicdebtsustainabilityanalysisfocusesheavilyonmaintainingdebtatytoaccessfinancialresourcesandisinconsistentwithalong-termjourneytowardsapproachtoassessingpublicdebtsustainabilitythatdulyconsiders,amongothers,acountry’sSustainableDevelopmentGoalinvestmentneeds;nationalSustainableDevelopmentGoalfinancingstrategies;andthesocioeconomicandenvironmentalbenefitsofpublicinvestments.Indeed,theEconomicandnforAsiaandthePacifichasdevelopedsuchanaugmentedandfuture-focusedapproachtodebtsustainabilityassessments,5anditwillengagewithmemberStatesatthefourthsessionoftheCommitteeonenttobeheldinBangkoklaterin2023,andthroughtechnicalassistanceprojects.IV.Policiestoenhancethefiscalspace16.Withboldpolicyactionsatthedomesticlevelandaspiritofandcollaborationenhancingfiscalspacetosecurepublicdebtsustainabilityandtoeffectivelyrespondtotheambitionsofthe2030AgendaDetaileddiscussionofseveralsuchforward-lookingpoliciesisavailableinthemestudiespreparedfortheseventy-seventhandseventy-eighthsessionsoftheCommission.Thediscussionbelowhighlightsthesalientpolicies.4Ibid.,chapter2.5Ibid.,chapter4.ESCAP9/146B23-00180A.Increasingfiscalrevenue17.Betterandefficienttaxadministrationcanhelpreducetaxavoidanceamongcompaniesandindividuals.Highertax-paymentcompliancenotonlyincreasesfiscalrevenues,butalsopostponespotentialfutureincreasesintaxrates.Amongothermeasurestofurtherimprovethequalityoftaxadministration,governmentscouldintroduceandenforceeffectivetaxlegislation;increasetheuseofinformationtechnologyintaxoperations,suchndtaxreportingstreamlinetaxproceduresandadoptsetup.18.Governmentsshouldalsoseektobroadenthetaxbasebyrationalizingexistingtaxexemptions,formalizinginformaleconomicactivitiesandintroducingnewtaxesthatwillbenefitinclusiveandforward-lookinggreendevelopment.Forexample,generoustaxincentivestopromoteforeigninvestmentprojectsincarbon-heavyindustriescouldberationalizedorcancelled.Inadditiontosupportingeconomicformalization,digitalizationofrowingdigitaleconomy.619.InmostAsia-Pacificeconomies,thetaxsystemsrelyonindirecttaxes,suchasconsumptiontaxes,ratherthandirecttaxes,suchascorporateandpersonalincometaxes.Suchrelianceismainlyunderpinnedbylargeinformaleconomiesandlimitedtaxadministrationcapacitytocollectdirecttaxes.7Reducingtherelianceonindirecttaxescanboostfuturegovernmentrevenueandreduceincomeinequality.Inthisregard,governmentsshouldseektotioninthecomingyearsinparticularmoreprogressivepersonalincometaxes.20.Emergingtransboundarychallengesontaxationalsorequireenhancedregionalandglobaltaxcooperation.Newbusinessmodelsandachangingglobaleconomiclandscapearemakingtaxationbasedontraditionalmodels,whichareterritory-basedandrelyontangibleassets,morechallenging.conomyillicitfinancialflowsprofitshiftingbymultinationalfirmsandoffshoreevasionbywealthyindividuals.exchangeofknowledgeandbestpractices,andcapacity-buildingoninternationaltaxcooperation.B.Improvingpublicspendingefficiencyandeffectiveness21.Asia-Pacificcountriescanimprovepublicexpendituremanagementbyenhancingbothallocativeandoperationalefficiencies.EnhancingallocativeefficiencyrequireslinkagesbetweenannualbudgetsandtheSustainableDevelopmentGoalsandotherfuturedevelopmentprioritiesatthenationaloncernsustainableDevelopmentGoalscanbeadoptedMeanwhileimprovingoperationalefficiencyinvolvesbetterprojectcyclemanagement,includinghavingeffectiveduediligence,suitableprojectsizes,strongprojectoversightandmeasurestocurbcorruption.6EconomicandSocialSurveyofAsiaandthePacific2022:BuildingForwardFairer–EconomicPoliciesforanInclusiveRecoveryandDevelopment(UnitedNationspublication,2022).7Ibid.ESCAP9/14B23-00180722.Regardingallocativeefficiency,defenceexpendituresinmanyAsia-Pacificeconomiesstillaccountforover10percentofthetotalpublicexpenditure.8InThailand,defencespendinghasbeenpartiallyreallocatedtofundtheintroductionofauniversalhealthcareprogramme,whichoffersgreaterdevelopmentimpacts.9Beyonddefencespending,thepublicsectorremainsthemajoremployerinseveralAsia-Pacificcountrieswherecivilservicesalariesaccountforoverhalfoftotalpublicexpenditure.10Inthisregard,governmentsmayreassesstheirfutureprioritiesandallocatemorefiscalresourcestootherconcerns,forinstance,enhancingfoodandenergysecurityandachievingnationalclimateambitions.23.Onoperationalefficiency,digitalizationandthetargetingofpublicspending,programmescanplayanimportantrole.Greateruseofinformationtechnologiesshouldbeintroducedthroughouttheprocess,fromtheallocationoffundstoexpenditureandimpactmonitoring.Thisisparticularlyimportantforcorepublicspendingareas,suchashealthcare,educationandsocialprotection,whichhavenotablyreducedpovertyandincomeinequalityintheAsia-Pacificregion.11InthePacific,healthspendinghasbeenreorientedowardspreventivecarespecializedhealthservicesandearlytreatmentsThisapproachhasresultedinenhancedhealthspendingeffectivenessandshouldremainthewayforwardfromthestrategicforesightperspective.24.Theprovisionofgovernmentsubsidiesonessentialitemshelpsvulnerablehouseholdstoweathercommoditypriceshocks.Amidhighglobalfoodprices,governmentsmayconsiderenhancingthescaleandtargetingoffoodsubsidies,suchasschoolfoodprogrammes.Similarly,targetedenergysubsidiescanbeusedtoaddresshighenergyprices,althoughtheseldbetemporaryinnaturetoavoiddisruptionstoalongtermtransitiontowardscleanandrenewableenergy.Toincreasetheefficiencyandtransparencyofthesesubsidyprogrammes,governmentsshouldseektoadoptortheregistryandmanagementofsubsidyprogrammesinthelong-termfoodandenergysecuritywouldhelprelievefuturesubsidycosts.C.Betterpublicdebtmanagementsustainabilityrisks,governmentscanmakepublicdebtmanagementmoreeffective.Amongotherbenefits,thiscanresultinlowerfinancingcostsandbetterriskmanagement.Tothisend,governmentsshouldaimtoestablishortpracticesinthecomingyears:(a)Cleardebtmanagementobjectivesandtransparentlegal(b)Strongandeffectivefiscal-monetarycoordination;8ReclaimingOurFuture:ACommonAgendaforAdvancingSustainableDevelopmentinAsiaandthePacific(UnitedNationspublication,2022).9EconomicandSocialSurveyofAsiaandthePacific2018:MobilizingFinanceforSustained,InclusiveandSustainableEconomicGrowth(UnitedNationspublication,2018).10ReclaimingOurFuture.11EconomicandSocialSurveyofAsiaandthePacific2018andEconomicandSocialSurveyofAsiaandthePacific2022.ESCAP9/148B23-00180(c)Separateandaccountablepublicdebtmanagementofficestothenpolicycredibility(d)Thetimelycollection,monitoringandreportingofpublicdebt(e)Therightbalancebetweendebtservicingcostsandrisklevel,alcontingentliabilityandrisksstemmingfromvolatileinterestrates,exchangeratesandmarketliquidity;(f)Aneffectivegovernmentcashmanagementsystemthatfeaturescentralizedgovernmentbankaccountsandanabilitytomakeaccuratecashflowforecasts..ManyAsia-Pacificcountrieshavedemonstratedvariousgoodpracticesonpublicdebtmanagement.Forinstance,IndonesiaestablishedtheFinancialSystemStabilityForum–comprisingtheMinistryofFinance,theBankofIndonesia,theFinancialServicesAuthorityandtheIndonesiaDepositInsuranceCorporation–tostrengthenthecoordinationoffiscalandmonetarypolicy.TheForumconvenesregularmeetingsanditsmemberssharetheirmentNepalsetupthePublicDebtManagementOfficein2018toconsolidatealldebtmanagementfunctionsundertheMinistryofFinance.Inaddition,PapuaNewGuineaamendedtheFiscalResponsibilityActtoaccommodatetheabsorptionofcontingentliabilitiesandestablishedaninter-agencyofficeundertheDepartmentofTreasurytomonitorandcleararrears.V.Consideringsovereigndebtrestructuring27.Adefaultonsovereigndebtcanincurlargesocioeconomiccostsfordebtorcountriesduetoseveralreasons.Lossesineconomicoutputduetoasovereigndebtdefaultareestimatedat1–4percentofgrossdomesticproductannuallyintheshorttomediumterm.12Theimpactcanalsobelong-lasting,withsignificantdeteriorationinpovertyandsocialindicators.13Suchahighcostofsovereigndefaultsisunderpinnedbyfactorssuchashigherborrowingitalmarketexclusionreputationalspilloversdomesticfinancialandpoliticalcosts;anddirectsanctionsandtradecosts.Creditorholdoutsalsoresultinprotractednegotiations,prolongeddebtoverhangandrepeateddebtrestructuringneeds.28.Debtrestructuringisthemainchannelformitigatingthedamageinascenarioofpotentialormaterializedsovereigndefaults.Throughdifferentcombinationsofmaturityextensions,couponadjustmentsandprincipalhaircuts,14much-neededbreathingspacecanbecreatedtoensurefuture12SeeDmitryKuvshinovandKasparZimmermann,“Sovereignsgoingbust:estimatingthecostofdefault”,EuropeanEconomicReview,vol.119(October2019),pp.1–21;SilviaMarchesiandTaniaMasi,“Lifeafterdefault:privateandofficialdeals”,JournalofInternationalMoneyandFinance,vol.113(May2021);andJuanP.Farah-Yacoubandothers,“Thesocialcostsofsovereigndefault”,PolicyResearchWorkingPaper,No.10157(Washington,D.C.,WorldBank,2022).13SeeFarah-Yacoubandothers,“Thesocialcostsofsovereigndefault”.14Maturityextensions,sometimesreferredtoasreschedulingorreprofiling,refertoextensionsintheduedatesofinterestpaymentsorprincipalrepaymentandtheintroductionofgraceperiod.Theycanalsoreducethepresentvalueofoutstandingdebtclaims,butsuchreductionstendtobelimited.Couponadjustmentsrefertoreductionsininterestratesontheoutstandingdebt.Principalhaircutsrefertoreductionsintheprincipalamountofthedebt.ESCAP9/14B23-001809continuityinessentialpublicspendingreducefiscalburdens,regainaccesstofinancialmarketsandrestorefinancialresilienceinthelongerterm.Mostsovereigndebtrestructuringsarenotsufficientlypre-emptiveandaretoosmallinscale.Debtrestructuringthatiscarriedouttoolateismainlyduetoconcernsoverdomesticpoliticalcostsandfinancialinstability.Moreover,thefailureofinter