In times of crisis, such as following a natural disaster or a deep economic recession, countries can face difficulties paying their debts, and in extreme cases, may need to restructure their obligations. This process can be time consuming and costly for all parties involved, which is often the last thing a country needs in a crisis. This presentation will explore how state-contingent debt – bonds which link repayment to real world events and conditions – can help sovereigns build greater ex-ante resilience to shocks, and provide debt relief when its most needed in a timely and efficient manner.
