Rodrigo Olivares-Caminal, head of Kepler-Karst’s sovereign advisory practice, explains in this article published in El Español how debt pause clauses allow vulnerable countries to temporarily suspend debt payments after natural disasters or severe emergencies, freeing up resources for recovery without affecting investor confidence or triggering a default.
With real examples such as Barbados and Grenada —where these clauses have already been triggered following a devastating hurricane— this financial contractual innovation is key to strengthening fiscal resilience in the face of climate change and global crises.
It is a fundamental step for countries to protect their populations and advance towards sustainable development.
Read the full article here.
Access Spanish version here.
