Prevention And Resolution Of Sovereign Debt Crises

Author : Ms.Julianne Ams,Mr.Tamon Asonuma,Mr.Wolfgang Bergthaler,Ms.Chanda M DeLong,Ms.Nouria El Mehdi,Mr.Mark J Flanagan,Mr.Sean Hagan,Ms.Yan Liu,Charlotte J. Lundgren,Mr.Martin Mühleisen,Alex Pienkowski,Mr.Gustavo Pinto,Mr.Eric Robert
Publisher : INTERNATIONAL MONETARY FUND
Page : 22 pages
File Size : 53,7 Mb
Release : 2018-09-13
Category : Business & Economics
ISBN : 1484371321

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Prevention and Resolution of Sovereign Debt Crises by Ms.Julianne Ams,Mr.Tamon Asonuma,Mr.Wolfgang Bergthaler,Ms.Chanda M DeLong,Ms.Nouria El Mehdi,Mr.Mark J Flanagan,Mr.Sean Hagan,Ms.Yan Liu,Charlotte J. Lundgren,Mr.Martin Mühleisen,Alex Pienkowski,Mr.Gustavo Pinto,Mr.Eric Robert Pdf

“The IMF’s Role in the Prevention and Resolution of Sovereign Debt Crises” provides a guided narrative to the IMF’s policy papers on sovereign debt produced over the last 40 years. The papers are divided into chapters, tracking four historical phases: the 1980s debt crisis; the Mexican crisis and the design of policies to ensure adequate private sector involvement (“creditor bail-in”); the Argentine crisis and the search for a durable crisis resolution framework; and finally, the global financial crisis, the Eurozone crisis, and their aftermaths.

Author : Mr.Eduardo Borensztein,Mr.Olivier Jeanne,Mr.Paolo Mauro,Mr.Jeronimo Zettelmeyer,Mr.Marcos Chamon
Publisher : International Monetary Fund
Page : 72 pages
File Size : 45,6 Mb
Release : 2005-01-26
Category : Business & Economics
ISBN : 9781589063778

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Sovereign Debt Structure for Crisis Prevention by Mr.Eduardo Borensztein,Mr.Olivier Jeanne,Mr.Paolo Mauro,Mr.Jeronimo Zettelmeyer,Mr.Marcos Chamon Pdf

The debate on government debt in the context of possible reforms of the international financial architecture has thus far focused on crisis resolution. This paper seeks to broaden this debate. It asks how government debt could be structured to pursue other objectives, including crisis prevention, international risk-sharing, and facilitating the adjustment of fiscal variables to changes in domestic economic conditions. To that end, the paper considers recently developed analytical approaches to improving sovereign debt structure using existing instruments, and reviews a number of proposals--including the introduction of explicit seniority and GDP-linked instruments--in the sovereign context.

Author : Mr.Damiano Sandri
Publisher : International Monetary Fund
Page : 43 pages
File Size : 54,8 Mb
Release : 2015-10-16
Category : Business & Economics
ISBN : 9781513569246

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Dealing with Systemic Sovereign Debt Crises by Mr.Damiano Sandri Pdf

The paper presents a tractable model to understand how international financial institutions (IFIs) should deal with the sovereign debt crisis of a systemic country, in which case private creditors' bail-ins entail international spillovers. Besides lending to the country up to its borrowing capacity, IFIs face the difficult issue of how to address the remaining financing needs with a combination of fiscal consolidation, bail-ins and possibly official transfers. To maximize social welfare, IFIs should differentiate the policy mix depending on the strength of spillovers. In particular, stronger spillovers call for smaller bail-ins and greater fiscal consolidation. Furthermore, to avoid requiring excessive fiscal consolidation, IFIs should provide highly systemic countries with official transfers. To limit the moral hazard consequences of transfers, it is important that IFIs operate under a predetermined crisis-resolution framework that ensures commitment.

Author : Federico Sturzenegger,Jeromin Zettelmeyer
Publisher : MIT Press
Page : 399 pages
File Size : 43,7 Mb
Release : 2007-01-05
Category : Business & Economics
ISBN : 9780262195539

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Debt Defaults and Lessons from a Decade of Crises by Federico Sturzenegger,Jeromin Zettelmeyer Pdf

Detailed case studies of debt defaults by Russia, Ukraine, Pakistan, Ecuador, Moldova, and Uruguay, framed by a comprehensive discussion of the history, economic theory, legal issues, and policy lessons of sovereign debt crises. The debt crises in emerging market countries over the past decade have given rise to renewed debate about crisis prevention and resolution. In Debt Defaults and Lessons from a Decade of Crises, Federico Sturzenegger and Jeromin Zettelmeyer examine the facts, the economic theory, and the policy implications of sovereign debt crises. They present detailed case histories of the default and debt crises in seven emerging market countries between 1998 and 2005: Russia, Ukraine, Pakistan, Ecuador, Argentina, Moldova, and Uruguay. These accounts are framed with a comprehensive overview of the history, economics, and legal issues involved and a discussion from both domestic and international perspectives of the policy lessons that can be derived from these experiences. Sturzenegger and Zettelmeyer examine how each crisis developed, what the subsequent restructuring encompassed, and how investors and the defaulting country fared. They discuss the new theoretical thinking on sovereign debt and the ultimate costs entailed, for both debtor countries and private creditors. The policy debate is considered first from the perspective of policymakers in emerging market countries and then in terms of international financial architecture. The authors' surveys of legal and economic issues associated with debt crises, and of the crises themselves, are the most comprehensive to be found in the literature on sovereign debt and default, and their theoretical analysis is detailed and nuanced. The book will be a valuable resource for investors as well as for scholars and policymakers.

Author : Barry Herman,José Antonio Ocampo,Shari Spiegel
Publisher : OUP Oxford
Page : 532 pages
File Size : 46,7 Mb
Release : 2010-04-01
Category : Business & Economics
ISBN : 9780191614705

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Overcoming Developing Country Debt Crises by Barry Herman,José Antonio Ocampo,Shari Spiegel Pdf

Developing country debt crises have been a recurrent phenomenon over the past two centuries. In recent times sovereign debt insolvency crises in developing and emerging economies peaked in the 1980s and, again, from the middle 1990s to the start of the new millennium. Despite the fact that several developing countries now have stronger economic fundamentals than they did in the 1990s, sovereign debt crises will reoccur again. The reasons for this are numerous, but the central one is that economic fluctuations are inherent features of financial markets, the boom and bust nature of which intensify under liberalized financial environments that developing countries have increasingly adopted since the 1970s. Indeed, today we are in the midst of an almost unprecedented global "bust." The timing of the book is important. The conventional wisdom is that the international economic and financial system is broken. Policymakers in both the poorest and the richest countries are likely to seriously consider how to restructure the international trade and financial system, including how to resolve sovereign debt crises in a more effective and fair manner. This book calls for the international reform of sovereign debt workouts which derives from both economic theory and real-world experiences. Country case studies underline the point that we need to do better. This book recognizes that the politics of the international treatment of sovereign debt have not supported systemic reform efforts thus far; however, failure in the past does not preclude success in the future in an evolving international political environment, and the book thus puts forth alternative reform ideas for consideration.

Author : International Monetary Fund. Research Dept.
Publisher : International Monetary Fund
Page : 94 pages
File Size : 53,5 Mb
Release : 2004-02-07
Category : Business & Economics
ISBN : 9781498330251

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Sovereign Debt Structure for Crisis Prevention by International Monetary Fund. Research Dept. Pdf

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Author : Mr.Marco Committeri,Francesco Spadafora
Publisher : International Monetary Fund
Page : 50 pages
File Size : 48,7 Mb
Release : 2013-01-22
Category : Business & Economics
ISBN : 9781475533828

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You Never Give Me Your Money? Sovereign Debt Crises, Collective Action Problems, and IMF Lending by Mr.Marco Committeri,Francesco Spadafora Pdf

We review the impact of the global financial crisis, and its spillovers into the sovereign sector of the euro area, on the international “rules of the game” for dealing with sovereign debt crises. These rules rest on two main pillars. The most important is the IMF’s lending framework (policies, financing facilities, and financial resources), which is designed to support macroeconomic adjustment packages based on the key notion of public debt sustainability. The complementary pillar is represented by such contractual provisions as Collective Action Clauses (CACs) in sovereign bonds, which aim to facilitate coordination among private creditors in order to contain the costs of a debt default or restructuring. We analyze the most significant changes (and their consequences) prompted by the recent crises to the Fund’s lending framework, not only in terms of additional financial resources, new financing facilities (including precautionary ones), and cooperation with euro-area institutions, but also as regards the criteria governing exceptional access to the Fund’s financial resources. We highlight a crucial innovation to these criteria, namely that, for the first time, they now explicitly take account of the risk of international systemic spillovers. Finally, we discuss how the recent crises have provided new political support for a broader dissemination of CACs in euro-area sovereign bonds. Importantly, in the first case involving an advanced economy, CACs were activated in the debt exchange undertaken by Greece in Spring 2012.

Author : Ms.Carmen Reinhart,Mr.Kenneth Rogoff
Publisher : International Monetary Fund
Page : 21 pages
File Size : 52,7 Mb
Release : 2013-12-24
Category : Business & Economics
ISBN : 9781475553772

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Financial and Sovereign Debt Crises by Ms.Carmen Reinhart,Mr.Kenneth Rogoff Pdf

Even after one of the most severe multi-year crises on record in the advanced economies, the received wisdom in policy circles clings to the notion that high-income countries are completely different from their emerging market counterparts. The current phase of the official policy approach is predicated on the assumption that debt sustainability can be achieved through a mix of austerity, forbearance and growth. The claim is that advanced countries do not need to resort to the standard toolkit of emerging markets, including debt restructurings and conversions, higher inflation, capital controls and other forms of financial repression. As we document, this claim is at odds with the historical track record of most advanced economies, where debt restructuring or conversions, financial Repression, and a tolerance for higher inflation, or a combination of these were an integral part of the resolution of significant past debt overhangs.

Author : Jürgen Kaiser
Publisher : Unknown
Page : 39 pages
File Size : 41,7 Mb
Release : 2010
Category : Electronic
ISBN : 386872477X

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Resolving Sovereign Debt Crises by Jürgen Kaiser Pdf

Author : S. Ali Abbas,Alex Pienkowski,Kenneth Rogoff
Publisher : Oxford University Press
Page : 288 pages
File Size : 51,5 Mb
Release : 2019-10-21
Category : Business & Economics
ISBN : 9780192591401

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Sovereign Debt by S. Ali Abbas,Alex Pienkowski,Kenneth Rogoff Pdf

The last time global sovereign debt reached the level seen today was at the end of the Second World War, and this shaped a generation of economic policymaking. International institutions were transformed, country policies were often draconian and distortive, and many crises ensued. By the early 1970s, when debt fell back to pre-war levels, the world was radically different. It is likely that changes of a similar magnitude -for better and for worse - will play out over coming decades. Sovereign Debt: A Guide for Economists and Practitioners is an attempt to build some structure around the issues of sovereign debt to help guide economists, practitioners and policymakers through this complicated, but not intractable, subject. Sovereign Debt brings together some of the world's leading researchers and specialists in sovereign debt to cover a range of sub-disciplines within this vast topic. It explores debt management with debt sustainability; debt reduction policies with crisis prevention policies; and the history with the conjuncture. It is a foundation text for all those interested in sovereign debt, with a particular focus real world examples and issues.

Author : Chris Jochnick,Fraser A. Preston
Publisher : Oxford University Press
Page : 336 pages
File Size : 44,8 Mb
Release : 2006-04-13
Category : Business & Economics
ISBN : 9780190290573

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Sovereign Debt at the Crossroads by Chris Jochnick,Fraser A. Preston Pdf

Recent world events have created a compelling need for new perspectives and realistic solutions to the problem of sovereign debt. The success of the Jubilee 2000 movement in raising public awareness of the devastating effects of debt, coupled with the highly publicized Bono/O'Neill tour of Africa, and the spectacular default and economic implosion of Argentina have helped spur a global debate over debt. A growing chorus of globalization critics, galvanized by the Catholic Church's demand for forgiveness and bolstered by recent defaults, has put debt near the top of the international agenda. Creditor governments and international financial institutions have belatedly recognized the need for more sustainable progress on debt as an inescapable step towards economic recovery in many parts of the world. This book is intended to advance the dialogue around these issues by providing a comprehensive overview of the problems raised by debt and describing new and practical approaches to overcoming them. It will be the first in more than a decade to bring together under one cover the voices of prominent members of the international debt community. It will include pieces from the most relevant constituencies: from creditors (the IMF/World Bank, government lenders, private investors) to critics (debtor representatives, activists, and academics) and analysis from economists, bankers, lawyers, social scientists, and politicians. As contributions come from such leading thinkers across a range of disciplines, this book will offer a timely guide for understanding and influencing the debt debate.

Author : Jeannette Abel
Publisher : Routledge
Page : 0 pages
File Size : 51,5 Mb
Release : 2019
Category : Debts, Public
ISBN : 0367182351

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The Resolution of Sovereign Debt Crises by Jeannette Abel Pdf

This book examines the current mechanisms for solving sovereign debt crises. Ultimately, it explores possible insolvency proceedings for states at EU level and their implementation options.

Author : International Monetary Fund. Policy Development and Review Dept.,International Monetary Fund. Strategy, Policy, & Review Department
Publisher : International Monetary Fund
Page : 32 pages
File Size : 41,8 Mb
Release : 2003-01-28
Category : Business & Economics
ISBN : 9781498329880

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Crisis Resolution in the Context of Sovereign Debt Restructuring - A Summary of Considerations by International Monetary Fund. Policy Development and Review Dept.,International Monetary Fund. Strategy, Policy, & Review Department Pdf

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Author : M. Ayhan Kose,Peter Nagle,Franziska Ohnsorge,Naotaka Sugawara
Publisher : World Bank Publications
Page : 403 pages
File Size : 44,9 Mb
Release : 2021-03-03
Category : Business & Economics
ISBN : 9781464815454

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Global Waves of Debt by M. Ayhan Kose,Peter Nagle,Franziska Ohnsorge,Naotaka Sugawara Pdf

The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.

Author : Vinod K. Aggarwal,Brigitte Granville
Publisher : Chatham House (Formerly Riia)
Page : 312 pages
File Size : 40,6 Mb
Release : 2003
Category : Business & Economics
ISBN : STANFORD:36105114378420

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Sovereign Debt by Vinod K. Aggarwal,Brigitte Granville Pdf

This work examines the ongoing debate on resolving sovereign debt defaults and alleviating the debt burden of heavily indebted poor countries. Concentrating primarily on the period from the 1982 and focusing on money owed to both the public and the private sector, the volume examines the origins of debt crises, rescheduling tactics, and efforts to create a more enduring solution to the problem of coping with debt, as well as its efficacy. Policy recommendations are put forward for dealing with the onerous problem of debt default and rescheduling.