Bankruptcy Procedures for Sovereigns: A History of Ideas, 1976-2001
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Summary:
This paper describes the evolution of ideas to apply bankruptcy reorganization principles to sovereign debt crises. Our focus is on policy proposals between the late 1970s and Anne Krueger's (2001) proposed "Sovereign Debt-Restructuring Mechanism," with brief reference to the economics literature on sovereign debt. We describe the perceived inefficiencies that motivate proposals, and how proposals seek to change debtor and creditor incentives. We find that there has been a moving concensus on what constitutes the underlying problem, but not on how to fix it. The range of proposed approaches remains broad and only recently shows some signs of narrowing.
Series:
Working Paper No. 2002/133
Subject:
Asset and liability management Debt renegotiation Debt rescheduling Debt restructuring Financial crises Legal support in revenue administration Revenue administration
English
Publication Date:
August 1, 2002
ISBN/ISSN:
9781451855500/1018-5941
Stock No:
WPIEA1332002
Pages:
46
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