Understanding responsible sovereign lending and borrowing is crucial for the stability of the global economy. Unlike individuals or companies, countries don't have a formal process to deal with overwhelming debt. Misbehavior from borrowers or lenders can make credit harder to get and more expensive. The researchers highlight the importance of honesty, realistic assessments, and aligned incentives for both parties. They stress the need for careful pre- and post-disbursement diligence, as well as effective sanctions and renegotiation processes. By outlining these responsibilities, the researchers aim to prevent financial instability and ensure fair practices in sovereign debt management.