A better way to restructure sovereign debt

QED Newsletter

May 1, 2014

The following is an excerpt. To view the full article please visit the link below

In contrast with individuals and companies, no bankruptcy procedures exist for countries that become unable to service their debt. The 2008 financial crisis and the Greek debt restructuring have highlighted the costs generated by our current ad hoc approach to sovereign debt treatment. Nevertheless, we still lack the political consensus that would be required to negotiate a formal, statutory sovereign bankruptcy process.

With corporate insolvency lawyer, Richard Gitlin and the Centre for International Governance Innovation (CIGI), alumnus Brett House (BAH ’94) has recently crafted a proposal for a Sovereign Debt Forum (SDF) that would produce better outcomes from sovereign …

* * *

The opinions expressed in this article/multimedia are those of the author(s) and do not necessarily reflect the views of CIGI or its Board of Directors.