US Treasury pushes faster sovereign debt restructuring and fairer competition

The US Treasury is pressing the G20 to move faster on sovereign debt restructurings, arguing that uncertainty over heavily indebted developing economies is holding back investment and growth.

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Under America's leadership, the G20 is working to address sovereign debt challenges for such economies in ways that restore confidence. The G20 is making sovereign debt restructurings faster, more transparent, and more predictable through stronger international coordination.

Treasury officials said the group is working under the Trump administration’s leadership to make restructuring processes more transparent and predictable. They said many emerging and developing economies face debt maturities while new financing sources are slowing, creating liquidity pressures.

Treasury Secretary Scott Bessent told the G20 Finance Ministerial that addressing sovereign debt vulnerabilities remains a central priority. Officials pointed to Senegal’s agreement to pursue restructuring under the G20 Common Framework as evidence of progress.

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We want less time to be consumed by uncertainty and more time devoted to investment, growth, and market access.

The Treasury also shifted attention to global trade imbalances, calling for fair competition and a level playing field. The administration wants institutions including the IMF and OECD to strengthen their analysis of market-distorting policies, including excessive subsidies and reliance on exports to drive growth. It said such policies can undermine workers and supply chains worldwide.

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Trump Administration strongly believes that prosperity is strongest when competition is fair.