U.S. Treasury Department Announces the G20 Illustrative Template Memorandum of Understanding (MOU) for Future Negotiations Under the Common Framework

WASHINGTON—Under the U.S. G20 Presidency, G20 and Paris Club members have published a template MOU to demonstrate the features of a sovereign debt treatment by official bilateral creditors under the Common Framework. Publishing the template achieves a key deliverable for the U.S. G20 Presidency. The template outlines the general terms and conditions between borrowing countries and their official bilateral creditors, which will help to increase the transparency of the process and improve the speed and clarity of debt restructurings. Such transparency not only improves the monitoring of debt developments and helps to address vulnerabilities, it also facilitates coordinated action to achieve faster debt workouts.To view the template MOU, click here.