Sovereign debt restructurings are complex processes that involve negotiations with a sovereign’s creditors to alter the terms of existing debt, aiming to restore fiscal sustainability and ensure long-term economic stability. Factors such as escalating debt service and borrowing costs, liquidity pressures originating from foreign exchange shortages and revenue shortfalls, limited revenue base resulting from recessions or stagnation from structural weaknesses such as declining competitiveness or having a narrow export base, or more subjective factors such as internal or external political pressure to ensure social stability at any given moment, often prompt considerations of debt restructuring.