This paper outlines a proposal for a nonstatutory, incorporated, non-profit, membership-based Sovereign Debt Forum (SDF) that would provide an independent standing body to research and preserve institutional memory on best practice in sovereign debt restructuring, while at the same time creating a venue to facilitate early engagement among creditors, debtors and other stakeholders when sovereigns encounter trouble. The proposed SDF would not require complex treaty negotiations to be enacted and it would complement existing institutions and processes to produce more efficient and effective resolution of sovereign financial distress when it arises by engaging both troubled and stable sovereigns in continuous dialogue with creditors and official institutions. By fomenting early action, the SDF would aim to prevent scenarios where deep debt restructuring becomes the inevitable resolution of severe sovereign crises.
About the Authors
Brett House is a CIGI Senior Fellow. Additionally, he is a Visiting Scholar at Massey College, University of Toronto and Lecturer in the Economics Department and a Senior Fellow at the Jeanne Sauvé Foundation at McGill University. His research looks at the effects of trade liberalization on growth, the rise of emerging markets, and options to improve sovereign debt restructuring. He is also an advisor to and partner in Tau+ Investment Management, a start-up impact fund.
Richard Gitlin is a CIGI Senior Fellow. An international bankruptcy lawyer, he played a leading role in the development of practices and procedures for successfully resolving complex global restructuring and insolvency cases. He has helped many countries improve their bankruptcy laws, including Canada, Republic of Korea, Indonesia and Mexico.