The Paris Club of creditor nations has called for significant reforms to the Common Framework, the primary mechanism for restructuring sovereign debt for low-income countries.
In its 2025 annual report, the group stated that the initiative needs to be made faster and more efficient to effectively address the growing debt distress among vulnerable economies.
The criticism highlights persistent friction in the global debt architecture.
The Common Framework, launched in 2020, was designed to coordinate debt relief between official bilateral creditors and private bondholders.
However, progress has been sluggish, with few countries completing full restructurings under the framework.
The Paris Club’s latest assessment suggests that without procedural changes, the tool risks becoming obsolete as debt burdens continue to mount.