Sovereign Debt Structure for Crisis Prevention

By Eduardo Borensztein, Olivier D Jeanne, Paolo Mauro, Jeromin Zettelmeyer, Marcos d Chamon

January 26, 2005

Preview Citation

Format: Chicago

Eduardo Borensztein, Olivier D Jeanne, Paolo Mauro, Jeromin Zettelmeyer, and Marcos d Chamon. Sovereign Debt Structure for Crisis Prevention, (USA: International Monetary Fund, 2005) accessed November 21, 2024

Summary

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.

Subject: Bonds, Emerging and frontier financial markets, Environment, External debt, Financial institutions, Financial markets, Inflation-indexed bonds, Local currency debt, Natural disasters, Public debt

Keywords: Africa, Asia and Pacific, Bond, Bonds, Debt, Debt structure, Debt structures, Emerging and frontier financial markets, Emerging market country, GDP-indexed bond, Global, Inflation-indexed debt, Local currency debt, Natural disasters, OP, Short-term debt

Publication Details

Pages:

69
Volume:

---
DOI:

---
Issue:

---
Series:

Occasional Paper No. 2005/001
Stock No:

S237EA
ISBN:

9781589063778
ISSN:

0251-6365

Supplemental Resources

Link to Abstract
pdf

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

Occasional Papers