Expert Group Meeting on Sovereign Debt Restructuring

CIGI in partnership with The Financing for Development Office (FfDO) of the United Nations Department of Economic and Social Affairs (UNDESA) organized an Expert Group Meeting on Sovereign Debt Restructuring on May 18, 2012. Participants included leading experts representing international institutions, academia, private sector creditor groups and other market participants, G24, civil society and policy makers, as well as the facilitator and negotiator of the UN second committee debt resolution.[1] The meeting was convened to explore concrete, practical steps to improve the framework for the timely and orderly restructuring of sovereign debt.

The Expert Group considered a range of issues, including ex ante incentive structures and institutional arrangements that facilitate or impede restructuring, recent developments with respect to voluntary debt exchanges, the outlook with respect to continued reliance on such mechanisms and possible enhancements and alternatives to the status quo. Participants considered both the possible need for statutory mechanisms to facilitate timely restructuring and provide greater clarity on the rules by which sovereign debt restructuring will occur, and options under the voluntary contractual approach. A panel discussed the priority of and prospects for reforms to improve the architecture for debt restructuring. The meeting featured a frank discussion of possible measures to enhance the effectiveness of the debt restructuring process and, as a result, to improve the efficiency of global capital markets by reducing losses faced by creditors, sovereign borrowers and others adversely affected by the uncertainty surrounding potentially disruptive debt scenarios.

For a summary of the May 18, 2012, Expert Group Meeting on Sovereign Debt Restructuring, click here.

[1]See Annex 1 for the Expert Group Meeting Agenda and Annex 2 for the list of participants in the linked PDF summary above.