Structuring and Restructuring Sovereign Debt: The Role of a Bankruptcy Regime

Structuring and Restructuring Sovereign Debt: The Role of a Bankruptcy Regime

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May 9, 2014 · Inglese · eBook (29 pagine)
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Dettagli del libro

Formato eBook
Pagine 29
Lingua Inglese
Pubblicato May 9, 2014
Editore INTERNATIONAL MONETARY FUND
ISBN-10 1282391941
ISBN-13 9781282391949

Descrizione

In an environment characterized by weak contractual enforcement, sovereign lenders can enhance the likelihood of repayment by making their claims more difficult to restructure ex post. We show however, that competition for repayment among lenders may result in a sovereign debt that is excessively difficult to restructure in equilibrium. This inefficiency may be alleviated by a suitably designed bankruptcy regime that facilitates debt restructuring.
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