It should create a special purpose vehicle -the DOVE (Debts of Vulnerable Economies) fund -- that will demonstrate to the financial markets how a responsible creditor treats African debtors in crisis.
The fund will also pledge that once the global economy begins to grow again it will work with African debtors to ensure that the debt does not become an unreasonable burden on their efforts to rebuild their economies.
Third, the DOVE fund will advocate that all private sector creditors should participate in a comparable standstill, both on debt payments and bond trading, and should applying the same principles as the DOVE fund in determining what to do with the debt of the participating countries after the crisis ends.
Fourth, the fund needs to be large enough to be an influential voice in any discussion among bondholders about the treatment of the participating African countries' debts.
The DOVE fund could encourage these groups to participate by issuing a social impact bond which would only offer holders a return that is linked to the post-crisis growth rate of sub-Saharan Africa and/or to the level of debt payments actually received by the DOVE fund after the crisis.
