The paper examines the main issues involved in translating domestic bankruptcy procedures to the sovereign context. It considers some of the principles by which domestic bankruptcy procedures operate, and the extent to which they apply to international lending. Two recent proposals are considered in more detail, that of Krueger (2001) and that of Pettifor (2002). The paper also considers the question of the ex ante effects of a procedure which makes default less costly, and concludes that despite a negative impact on the ability to borrow, the overall welfare e®ect need not be negative.
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Paper provided by Edinburgh School of Economics, University of Edinburgh in its series ESE Discussion Papers with number
93.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Michael Kremer & Seema Jayachandran, 2002.
"Odious Debt,"
NBER Working Papers
8953, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Seema Jayachandran & Michael Kremer, 2006.
"Odious Debt,"
American Economic Review,
American Economic Association, vol. 96(1), pages 82-92, March.
[Downloadable!]