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Amundi, T. Rowe Price Propose Debt Relief for Emerging Markets

4/20/2026

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Summary

Story summary

Amundi, a major bond investor, and T. Rowe Price propose pause clauses in sovereign bonds to help emerging markets during crises.
The clauses would let a country suspend debt payments for up to one year if a national emergency is declared and 60% of external creditors approve.
The aim is to address shocks from energy prices and climate disasters affecting developing nations.
Enforceability concerns and moral hazard could slow adoption.

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Story summary

Amundi, a major bond investor, and T. Rowe Price propose pause clauses in sovereign bonds to help emerging markets during crises.
The clauses would let a country suspend debt payments for up to one year if a national emergency is declared and 60% of external creditors approve.
The aim is to address shocks from energy prices and climate disasters affecting developing nations.
Enforceability concerns and moral hazard could slow adoption.