Structuring and Restructuring Sovereign Debt

Structuring and Restructuring Sovereign Debt
Author :
Publisher : International Monetary Fund
Total Pages : 30
Release :
ISBN-10 : 9781451912098
ISBN-13 : 1451912099
Rating : 4/5 (099 Downloads)

Book Synopsis Structuring and Restructuring Sovereign Debt by : Mr. Patrick Bolton

Download or read book Structuring and Restructuring Sovereign Debt written by Mr. Patrick Bolton and published by International Monetary Fund. This book was released on 2007-08-01 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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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