US Treasury Secretary Scott Bessent on 1 September called for faster, more transparent, and predictable sovereign debt restructuring, warning that developing economies face mounting debt burdens, weakening financing flows, and intensifying liquidity pressures. Speaking at a G20 sovereign debt meeting in Asheville, North Carolina, Bessent outlined a two-pronged agenda: accelerating restructuring for countries that need it, and improving the accuracy of global debt data.

A New Technical Study Group

Bessent announced that the G20 would establish a technical-level study group following the Asheville meeting to sustain momentum ahead of the G20 Leaders' Summit in Doral, Florida, in December. 'To maintain momentum and better inform leaders' discussions, we will establish a technical-level study group following today's meeting to continue advancing this important issue now and at the Leaders Summit in Doral in December,' he said.

The move signals that debt restructuring will remain a live agenda item through the close of the US G20 presidency, rather than being shelved after ministerial-level talks.

Why Developing Economies Are at Risk

Bessent described a deteriorating landscape for many emerging markets and developing economies, citing growing debt stocks, a slowdown in new financing sources, and rising liquidity pressures. Several low- and middle-income countries remain vulnerable to debt distress, he said, while some may ultimately require restructuring. 'Boosting durable growth is critical to enabling them to continue servicing debt and reducing their debt ratios over time,' he added.

The G20, Bessent argued, carries a particular responsibility given that its membership spans the world's largest official creditors as well as some of its biggest borrowing nations. 'That gives the G20 both the responsibility and the capacity to act,' he said.

Speed and Transparency: The Twin Goals

Bessent framed the US sovereign debt agenda around two core objectives. On speed, he said the aim was to reduce the time lost to uncertainty so that debtor nations could redirect energy toward investment, growth, and market access. On transparency, he stressed the need for borrowers and creditors to operate from a shared factual base. 'Better data support better policy, reduce surprises, and strengthen global financial stability,' he said.

Progress during the year, he noted, included the G20's agreement to publish an illustrative template memorandum of understanding and the Global Sovereign Debt Roundtable's updated playbook — both designed to make the restructuring process more predictable.

Risks and the Road Ahead

Bessent flagged dangers from what he called 'speculative or opaque financing arrangements,' warning that such structures complicate orderly restructuring. Future work, he said, should address capacity constraints facing borrowers, explore external creditor support for managing liquidity before countries enter distress, and push further on debt-data transparency.

The US G20 presidency had also consulted private creditors, advisers, and borrowing countries on the future direction of the group's debt-related work — discussions that underlined the importance of strengthening debt-management capacity and improving information-sharing with private creditors.

Bessent closed on an affirmative note, arguing that sovereign borrowing, when backed by sound macroeconomic policy, can finance education, healthcare, and infrastructure that generate durable growth. Whether the incoming study group can convert that aspiration into binding commitments before the December summit will be the real measure of this initiative's ambition.