Public debt sustainability problems are widespread in Sub-Saharan Africa just 10 years after the Heavily Indebted Poor Countries-Multilateral Debt Relief Initiative (HIPC-MDRI) debt write-off. At the same time, public investment needs for the Sustainable Development Goals remain vast. The...

International financial institutions (IFIs) generally enjoy preferred creditors treatment (PCT). Although PCT rarely appears in legal contracts, when sovereigns restructure bilateral or commercial debts, they normally pay IFIs in full. This paper presents a model where a creditor, such as an...