London Coalition issued two guides for sovereign debt restructurings by private lenders

The London Coalition on Sustainable Sovereign Debt published two voluntary guides on 8 October for banks, other loan creditors and export credit agencies involved in sovereign debt restructurings. The Loan Creditor Committee Guide covers how creditor groups can be established and operated. The Export Credit Agency Practice Note explains how ECA-backed loans can be treated during restructuring. Neither document creates a binding rule for lenders or borrowers.

The resources build on the coalition’s April implementation guide for private-sector sovereign loans. The UK government launched the multistakeholder forum in 2025, and its secretariat said the new documents followed consultation with borrowers, creditors, export credit agencies, international financial institutions and official-sector stakeholders. Reuters reported that the work aims to address coordination bottlenecks seen in restructurings such as Zambia and Ghana. The publications arrived before the IMF and World Bank annual meetings in Bangkok from 12 to 18 October.

CREDITOR COMMITTEES GET A PRACTICAL OPERATING MODEL

The loan guide addresses committee formation, governance, confidentiality, information-sharing and engagement with sovereign borrowers. It is intended to help lenders organise earlier and negotiate more consistently when several banks or non-bank creditors hold claims. The coalition presents the framework as practical guidance, leaving parties to adapt it to each restructuring.

The ECA note describes different agency structures and practices and how guaranteed or insured loans may be handled in a sovereign workout. By giving borrowers, advisers and creditors a common reference point, it seeks to reduce uncertainty over an ECA’s role. Its voluntary status means it does not replace the mandates, policies or legal rights of individual agencies.

UPTAKE WILL DETERMINE WHETHER THE GUIDES CHANGE NEGOTIATIONS

Reuters said commercial-bank creditor clubs had largely fallen out of use and some lenders warned that restructuring expertise had faded. It also reported that private lenders exposed to Senegal’s non-bonded debt formed a committee after the country announced plans for treatment under the G20 Common Framework. The new guides therefore arrive alongside a live test of whether earlier creditor organisation can reduce delays, although the Senegal process is separate.

The coalition said its broader work is intended to make restructurings more timely, predictable and efficient. Attention now shifts from publication to use by creditor committees, export credit agencies and sovereign borrowers, while debt coordination is expected to feature at the Bangkok meetings. The next verifiable milestones will be adoption in specific negotiations and any endorsement under Britain’s 2027 G20 presidency.