The International Monetary Fund (IMF) is a crucial player in debt relief when a country enters financial distress or falls into default. For a start, the IMF provides balance-of-payments financing conditional on economic adjustment, which is aimed at correcting imbalances and reestablishing macroeconomic stability. To this end, the IMF staff prepares a debt sustainability analysis. The analysis establishes the so-called resource envelope and the required financial relief a country needs to seek from its creditors in case the debt sustainability analysis shows that the debt burden is unsustainable. The IMF program and lending are conditional on the fund receiving financing assurances from the country's creditors in case its debt is deemed unsustainable or the country is in default....
