Sovereign Debt Restructuring and Debt Sustainability: An Analysis of Recent Cross-Country Experience
Occasional Papers, April 10, 2007
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- Sovereign Debt Restructuring and Debt Sustainability: An Analysis of Recent Cross-Country Experience
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Bibliographic details
- Authors: Harald Finger, Mauro Mecagni
- Published: April 10, 2007
- Series: Occasional Papers
- DOI: https://doi.org/10.5089/9781589066106.084
Summary and scope
- Restoring a country's debt to a sustainable path after a sovereign debt restructuring is key to ensuring a credible and durable exit from the crisis.
- The paper takes stock of the experiences of a number of countries that have restructured their sovereign liabilities, either following a default or preemptively to avoid a default.
- Countries analyzed: Argentina, the Dominican Republic, Ecuador, Moldova, Pakistan, Russia, Ukraine, and Uruguay.
- Emphasis of the study: sovereign debt owed to private creditors.
Major findings and analytical focus
- The analysis assesses the outcomes of debt-restructuring operations and whether debt sustainability has been restored.
- Focus areas and diagnostic elements highlighted in the publication:
- Debt sustainability assessment.
- Debt vulnerability and inferred crisis probability.
- Debt profile and debt ratio dynamics.
- Liquidity position and solvency problem identification.
- Stress testing and standard error considerations for debt projections.
- Asset and liability management implications for public debt and sovereign debt restructuring.
Policy-relevant themes and implications
- Restoring debt sustainability is presented as essential for a credible and durable exit from sovereign debt crises.
- The cross-country comparisons provide empirical material to inform policy on:
- Design of restructuring operations involving private creditors.
- Assessment frameworks for distinguishing liquidity versus solvency problems.
- Integration of stress testing into public debt management and debt-sustainability assessments.
Subjects and keywords
- Subjects: Asset and liability management, Bonds, Debt restructuring, Debt sustainability, External debt, Financial institutions, Financial sector policy and analysis, Public debt, Sovereign debt restructuring, Stress testing
- Keywords: Africa, Bonds, debt, debt profile, debt ratio, Debt restructuring, Debt sustainability, debt vulnerability, debt-sustainability assessment, Global, inferred crisis probability, liquidity position, OP, public debt crisis, ratio, solvency problem, Sovereign debt restructuring, standard error, Stress testing
International Monetary Fund — Sovereign Debt Restructuring and Debt Sustainability: An Analysis of Recent Cross-Country Experience (Occasional Paper No. 2007/003).
Content in this bundle
- I Overview