Sovereign debt is the total amount of money that a government owes to its creditors. This includes debt owed to domestic and foreign creditors, as well as to international financial institutions.

Sovereign debt can be classified into different types based on various factors such as the currency in which it is denominated, the maturity of the debt, and the interest rate.

Sovereign debt carries various risks, including the risk of default, currency risk, and interest rate risk.

Sovereign debt default can have severe consequences for a country, including economic recession, loss of access to international capital markets, and political instability.

There are various strategies that governments can use to manage sovereign debt, including fiscal consolidation, debt restructuring, and international financial assistance.

The IMF plays a significant role in sovereign debt management by providing financial assistance, monitoring debt sustainability, and providing technical assistance to countries.

The World Bank also plays a significant role in sovereign debt management by providing financial assistance, monitoring debt sustainability, and providing technical assistance to countries.

The Paris Club is a group of creditor countries that provides financial assistance to countries in debt distress.

The London Club is a group of commercial banks that provides financial assistance to countries in debt distress.

Sovereign debt differs from private debt in terms of the borrower, currency denomination, and maturity.

A country's sovereign debt sustainability is determined by various factors, including economic growth, fiscal balance, and external debt burden.

Countries with high levels of sovereign debt face various challenges, including economic instability, political instability, and social unrest.

Countries facing sovereign debt distress have various policy options available, including fiscal consolidation, debt restructuring, and international financial assistance.

Sovereign debt restructuring carries various risks, including loss of access to international capital markets, economic recession, and political instability.

The international community faces various challenges in addressing sovereign debt issues, including lack of coordination among creditor countries, lack of transparency in sovereign debt markets, and lack of effective mechanisms for resolving sovereign debt crises.