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

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 di...

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Bibliographic Details
Main Author: Bolton, Patrick (Author)
Format: Electronic eBook
Language:English
Published: Washington, D.C International Monetary Fund 2007
Series:IMF Working Papers Working Paper No. 07/192
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Summary: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
Physical Description:1 Online-Ressource (27 p)
ISBN:1451867565
9781451867565

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