2026 Perspectives for the Public Sector

Final Thoughts Debt-for-development conversions are evolving form niche conservation tools into mainstream sovereign finance instruments that can help countries achieve fiscal sustainability and development impact. The innovations in credit enhancement, the widening pool of institutional participants, and thematic expansion mark an important transition. By integrating debt conversions into national debt strategies, strengthening governance, and expanding into other development areas (health, infrastructure, education, supply chains etc.), countries can move from isolated transactions to scalable solutions that can help fill the development funding gap. These advancements, however, demand deep capital markets knowledge, specialized structuring expertise, and strategic partnerships with the multiple parties involved. Citi, with its robust Public Sector franchise, leading debt capital markets expertise in emerging markets and comprehensive capabilities across the broader organization, is uniquely positioned to lead this charge. While not a remedy for all global debt and development issues, these instruments, when structured thoughtfully, can significantly contribute to a nation’s fiscal headroom and unlock substantial finance for development. Citi is ready to help sovereigns realize the full potential of these instruments to foster development and debt sustainability. Citi is uniquely well-placed to support sovereigns in the design and execution of debt conversions . Citi’s Public Sector franchise brings unparalleled structuring expertise derived from (i) decades of working with sovereign entities globally on debt sustainability and economic development matters , and (ii) strong, enduring relationships with MDBs , which are critical for orchestrating the complex interplay of guarantees, insurance, and policy support for these transactions. Citi Perspectives for the Public Sector 23