Avoiding a new debt crisis: financial engineering or development dynamics?

April 07, 2023, Paris (Banque de France) and online

The FERDI's Chair on International Architecture Development Finance (IADF) is organizing six events in preparation for the June Paris Summit on Development Financing of Vulnerable Countries.

This fourth event was on the debt sustainability in the context of climate change and the instruments for a contingent debt treatment.


Agnès Benassy Quéré, Deputy Governor of the Banque de France  

Patrick Guillaumont, President of the Foundation for International Development Studies and Research  (FERDI)

Roundtable 1: Debt sustainability in the context of climate change

What impact does climate change have on the debt trajectories of developing countries? How can the investments needed for sustainable development be made on affordable terms?

How can the climate dimension be better integrated into debt sustainability analyses, in particular by taking into account the horizons of climate adaptation or transition investments? How to include domestic debt, while existing monitoring tools are generally focused on external sustainability?

How can  public debt management take into account the climate dimension? What role for debt-for-climate swaps? How can international financial institutions intervene?


Bruno Cabrillac, Deputy Director General of Economics and International Relations, Banque de France 


  • Renganaden Padayachy, Minister of Finance, Economic Planning and Development of Mauritius. [ONLINE]
  • Helen Yan Wang, Ph.D., Senior Academic Researcher, Global China Initiative, Boston University, Global Development Policy Center. [ONLINE]
  • Daniela Prates, Senior Economic Affairs Officer at UNCTAD Senior Economic Affairs Officer at the Debt and Development Finance Branch of the Division of Globalisation and Development Strategies of CNUCED

Brad Setser, Senior Fellow, Council for Foreign Relations[ONLINE]


  • Willam Roos, Assistant Secretary Multilateral,Development and Trade affairs at the Direction générale du Trésor (French Treasury)
  • Veda Poon, Director, International Finance, Member of the Executive Management Board, HM Treasury. [ONLINE]
Roundtable 2: Instruments for a contingent debt treatment

How can we improve policies for protecting countries from exogenous shocks? What is the ability of multilateral development banks and the International Monetary Fund to provide lending surges? 

What debt instruments should best deal with climate and other crises? How do they compare, compete or complement with other risk-sharing devices?

Can multilateral lenders also adopt climate or other shocks-related clauses ? Will the market accept generalised NPV-neutral instruments? What can the Paris summit achieve in this regard?


  • Hamouda Chekir, Co-founder, Finance for Development Lab (FDL)


  • Tahir Hamid Nguilin, Minister of Finance, Budget and Public Accounts of Chad.
  • Avinash Persaud, Special Adviser to the Prime Minister of Barbados, Mia Mottley [ONLINE]
  • Marcello Estevao, Senior Adviser of the World Bank Group's Equitable Growth, Finance, and Institutions Vice-Presidency [ONLINE]
  • Thomas Melonio, Director of the Agence française de development -AFD's Innovation, Research and Knowledge Department
  •  Veda Poon, Director, International Finance, Member of the Executive Management Board, HM Treasury. [ONLINE]
  •  Kawtar Ed-Dahmani, Managing Director for the Emerging Markets Sovereign Debt Team at Barings Asset Management [ONLINE]
  • Désiré Vencatachellum, Director of the Resource Mobilization and External Finance Department at the African Development Fund [ONLINE]


Since its creation, FERDI has made international development finance its priority programme. At the same time, it has carried out a great deal of work on country vulnerability, its different forms, their measurement and how they were or could be taken into account in international development finance. Ferdi is internationally recognised for its expertise on issues of country vulnerability and its links to financing. 

In addition, since the beginning of the year, FERDI has created a Chair on the "International Architecture Development Finance " (IADF) under the direction of Philippe le Houérou, Chairman of the Board of Directors of AFD and former CEO of IFC, and with the participation of a select group of French personalities with considerable experience in the field and an equal desire for reform, all intervening in their personal capacity: notably Rabah Arezki, former Chief Economist and Vice President of the African Development Bank; Bruno Cabrillac, Deputy Director General of Studies and International Relations, Banque de France; Sylviane Guillaumont Jeanneney, Professor Emeritus, former member of the Board of Directors of the AFD; Alain de Janvry and Elisabeth Sadoulet Professors at the University of California at Berkeley, Senior Fellows at Ferdi; Olivier Lafourcade, former Director at the World Bank; Alain Le Roy, Ambassadeur de France and former Under Secretary General of the United Nations; Jean-Michel Severino, Chairman of Investisseurs et Partenaires (I&P) and former Director General of the AFD. 

The purpose of the group was to reflect independently on what the global development finance system should become in the light of the current international situation and the lessons learned from the past 60 years. The announcement made by the President of the French Republic of a Summit to be held in Paris on the financing of vulnerable countries with a view to adopting a Financial Pact with these countries has led the IADF Chaire to adapt, accelerate and amplify its programme so as to make contributions on themes that are crucial to the orientation of the Summit.


  • Fondation pour les Études et recherches sur le développement international (Ferdi)
  • Banque de France
  • Finance Development Lab (FDL)