Think-tank raises heat in IMF sovereign debt debate

Financial Times

Robin Wigglesworth
January 16, 2014

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 LONDON -- The debate over the future shape of sovereign bankruptcy is heating up after another influential think-tank outlined its proposals to improve the government debt restructuring process to the International Monetary Fund board on Thursday.

The IMF last year published a controversial paper examining how and when countries restructure their debts and concluded that the current architecture was often a case of “too little, too late”, lengthening crises and putting taxpayer money at risk when bailouts simply increase a country’s debt burden – as was the case in Greece.

The fund is now locked in a protracted consultation …

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