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Debt crisis resolution (IMF)

The Addis Agenda makes clear that debtors and creditors need to work together to resolve unsustainable debt situations when they do occur. The Addis Agenda reaffirms commitment to support the remaining HIPC-eligible countries that are working to complete the HIPC process. It encourages consideration of further debt relief steps and/or other measures for countries affected by severe natural disasters and social or economic shocks that undermine a country’s debt sustainability. In recognition of increasing access of developing countries to international financial markets, the Addis Agenda welcomes reforms to pari passu and collective action clauses proposed by International Capital Market Association and encourages countries issuing bonds under foreign law to take further actions to include those clauses in all their bond issuance. It also recognizes the “Paris Forum” initiative by Paris Club.