The United Kingdom is taking steps to make debt restructuring faster and more efficient for developing countries following lengthy negotiations that complicated efforts by Ghana and Zambia to recover from their debt crises.

The UK government-backed London Coalition on Sustainable Sovereign Debt has released two new guides to help banks, private lenders and export credit agencies work more effectively with countries struggling to repay their debts.

The guides, published on Thursday, October 8, 2026, are intended to improve coordination among lenders and reduce delays that can keep financially distressed countries in debt negotiations for years.

According to Reuters, Ghana and Zambia are among the African countries whose debt restructuring experiences have exposed weaknesses in the international system for resolving sovereign debt crises.

When a country struggles to repay its debts, it may negotiate with lenders to reduce the amount owed, extend repayment periods or agree on new payment terms.

However, such negotiations can be prolonged because countries often owe money to multiple lenders, who must agree on how the debt should be restructured.

The new UK-backed initiative seeks to address this challenge by helping lenders share information, organise themselves and negotiate more effectively with governments.

The two documents, known as the Loan Creditor Committee Guide and the Export Credit Agency Practice Note, provide guidance on how lenders can coordinate their activities during debt restructuring negotiations.

The London Coalition said the guides were developed following consultations with governments, lenders, export credit agencies and international financial institutions.

The initiative forms part of broader efforts to improve the management of sovereign debt crises while preserving countries’ access to private investment.

The UK government established the London Coalition in 2025 to bring together governments and private lenders to address challenges in sovereign debt restructuring.

The latest move comes as debt challenges facing developing countries are expected to feature prominently at the upcoming International Monetary Fund and World Bank Annual Meetings in Bangkok.

The Coalition’s work is also expected to inform Britain’s priorities as it prepares to assume the G20 presidency.

Meanwhile, Senegal has announced plans to seek debt treatment under the G20 Common Framework, with some private lenders already forming a committee to coordinate negotiations.

The development highlights growing efforts to encourage lenders to work together rather than negotiate separately, a practice that can delay agreements and prolong economic uncertainty.

For countries such as Ghana, improvements in the debt restructuring process could help reduce uncertainty, restore investor confidence and support economic recovery when future debt difficulties arise.

Although the new guides do not cancel debts or guarantee faster agreements, they are expected to provide a more structured approach to negotiations and help address some of the challenges that have delayed debt restructuring in developing economies.

DR/MA