We are supporting critically indebted countries of the Global South by advocating effective implementation and improvement of the G20 Common Framework for Debt Treatments and debt transparency. We are supporting countries of the Global South in improving their debt management. We are also using bilateral instruments to free up additional resources for investment in sustainable development.

• Germany advocates for the effective implementation and improvement of the G20 Common Framework for Debt Treatments, especially through the introduction of CF guidelines including clear deadlines, future expansion of the Framework to (L)MICs and automatic debt service suspension following application & IMF staff level agreement for participating debtor countries.

• Germany also advocates for greater debt transparency on both debtor and donor side (public and private, e.g. by supporting the current OECD Debt Transparency Initiative). Comprehensive debt management is essential to prevent over-indebtedness or to restore debt sustainability. Germany is helping countries of the Global South to improve their debt management through regional and multilateral organisations, and as part of bilateral development cooperation.

• Germany supports debt-for-SDG swaps as an effective instrument for indebted (but not over-indebted) countries to create fiscal space for investment in sustainable development and adaptation to climate change. Germany is one of the few countries with an established bilateral debt swap instrument and is striving to expand this instrument.

• Germany considers Climate Resilient Debt Clauses (CRDR) to be an effective instrument for reducing pressure on indebted countries that are confronted with climate-related disasters in order to free up liquidity after such disasters. Germany is reviewing options for introducing climate-resilient finance mechanisms to provide better support to partner countries that are especially hard hit by climate events.