Sovereign Debt Restructurings 1950-2010: Literature Survey, Data, and Stylized Facts

Author/Editor:

Christoph Trebesch ; Michael G. Papaioannou ; Udaibir S Das

Publication Date:

August 1, 2012

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper provides a comprehensive survey of pertinent issues on sovereign debt restructurings, based on a newly constructed database. This is the first complete dataset of sovereign restructuring cases, covering the six decades from 1950–2010; it includes 186 debt exchanges with foreign banks and bondholders, and 447 bilateral debt agreements with the Paris Club. We present new stylized facts on the outcome and process of debt restructurings, including on the size of haircuts, creditor participation, and legal aspects. In addition, the paper summarizes the relevant empirical literature, analyzes recent restructuring episodes, and discusses ongoing debates on crisis resolution mechanisms, credit default swaps, and the role of collective action clauses.

Series:

Working Paper No. 2012/203

Subject:

Asset and liability management Bonds Debt restructuring Financial crises Financial institutions Public debt Sovereign debt restructuring

English

Publication Date:

August 1, 2012

ISBN/ISSN:

9781475505535/1018-5941

Stock No:

WPIEA2012203

Pages:

128

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