Several EMs have reached provisional agreements with creditors to restructure their sovereign debts in recent months, including Zambia, Ukraine, Sri Lanka and Ghana. In principle, restructurings should pave the way for improved fiscal positions, stronger and more sustainable growth, lower borrowing costs and a return to international bond markets. But history provides reasons for caution and we remain concerned about medium-term fiscal risks in some EMs and the potential for multiple restructurings in the future.
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