London coalition
The London Coalition on Sustainable Sovereign Debt is a results-based, multistakeholder forum convened by the Sustainable Sovereign Debt Hub. Its mission is to drive pragmatic, market-based solutions for more sustainable and affordable sovereign financing options and to improve restructuring outcomes for emerging economies through collaboration, innovation, and transparency.
The London Coalition was launched on 23 June 2025 and is co-chaired by the UK Economic Secretary of the Treasury, Lucy Rigby, representing the public sector, and former Standard Chartered Chairperson José Viñals, representing the private sector, and receives support from the Children’s Investment Fund Foundation.
The Sustainable Sovereign Debt Hub serves as the Secretariat to the London Coalition, supporting its working groups and advancing these initiatives through coordination, analysis, and stakeholder engagement.
Updates: April 2026
Two key proposals developed by the London Coalition were published on 16th of April, during the week of the 2026 IMF-World Bank Spring Meetings: a Pause Clause Proposal and Term Sheet for sovereign bond contracts and an Implementation Guide for Restructuring Private Sector Sovereign Loans.
- The Pause Clause Proposal and Term Sheet, developed by a group of leading international bondholders, will allow countries hit by major shocks to temporarily defer debt payments in a clear, time-bound way, building on precedents in Barbados and Grenada. This will sit alongside strong debt transparency so markets can price risk properly, and the group will continue consulting with developing countries to support uptake.
- The Implementation Guide for Restructuring Private Sector Sovereign Loans developed by leading commercial lenders provides a practical, voluntary reference on how to organise engagement and streamline discussions. This will help reduce delays and uncertainty in negotiations and limit the economic damage that prolonged debt distress can cause.
A Bloomberg exclusive, published on April 17th 2026, highlights how the Pause Clause Proposal and the Implementation Guide brought forward by the London Coalition on Sustainable Sovereign Debt form part of a set of practical solutions to improve sovereign borrowing and lending in developing economies.
Purpose and mission
The mission of the London Coalition is to deliver pragmatic solutions for sovereign finance, improve debt restructuring outcomes, and help countries meet development ambitions while maintaining access to sustainable financing solutions.
By providing a more formal avenue for engagement across governments, international financial institutions, and the financial sector, the Coalition seeks to develop and implement commercially viable and realistic solutions that will ensure developing economies can access steady, long-term investment from the private sector.
Why is this important?
The London Coalition emerges at a critical moment marked by significant geopolitical tensions and economic uncertainties that disproportionately impact developing economies’ financing landscape. These countries require stable and resilient financing solutions to address pressing social and environmental challenges.
Despite recent progress on improving debt sustainability, more needs to be done to speed up debt restructuring processes and develop financing options that are better suited to the needs of developing economies.
The Coalition’s role is pivotal in responding to these complex challenges by helping develop innovative debt instruments and practical market-based approaches that expand financing options for developing countries without disrupting market stability.
Structure and approach
The Coalition is a time-bound, results-driven forum designed to foster collaboration between governments, policymakers, and the private sector. Guided by the co-chairs and a multistakeholder Steering Committee, it features two technical working groups:
Bonded Debt Workstream
This group will design scalable liquidity relief solutions such as debt pause clauses, particularly for Small Island Developing States (SIDS) and Low-Income Countries (LICs), while also advancing on contract-based innovations to enhance debt transparency.
Non-bonded Debt Workstream
This group will explore ways to improve coordination among non-bonded commercial creditors during debt restructurings, analyse the sequencing of restructuring claims and the role of commercial insurers in the evolving lending landscape. It will also focus on developing model transparency clauses and strengthening debt resilience in sovereign loan contracts.
Resources
Improving understanding of ECA-backed loans in sovereign debt financing and restructurings
10 March 2026
Improving understanding of ECA-backed loans in sovereign debt financing and restructurings
10 March 2026
Improving understanding of ECA-backed loans in sovereign debt financing and restructurings
10 March 2026
The London Coalition will complement policy discussions in other international forums, such as the G20, the Global Sovereign Debt Roundtable (GSDR), and the Paris Club. The Coalition aims to produce tangible outputs by 2026 and present them at major international forums, including the IMF, G20, and COP30.
Call for feedback
For more information contact the London Coalition Secretariat at: team@ssdh.net
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