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Sovereign Insolvency Procedures – A Comparative Look At Selected Proposals

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  • Kathrin Berensmann
  • Angélique Herzberg

Abstract

The most practicable short‐term approaches for sovereign debt restructuring would include a code of conduct (voluntary approach) and collective action clauses (contractual approach). In the medium term, a sovereign insolvency procedure (statutory approach) may have an important role to play because it would be a comprehensive instrument designed to coordinate different creditor groups prior to and during a debt crisis. This paper provides a survey of six comprehensive policy proposals for a sovereign bankruptcy procedure. It points to approaches that could improve existing proposals and creates a basis for new proposals which could prove conducive to reaching political consensus.

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  • Kathrin Berensmann & Angélique Herzberg, 2009. "Sovereign Insolvency Procedures – A Comparative Look At Selected Proposals," Journal of Economic Surveys, Wiley Blackwell, vol. 23(5), pages 856-881, December.
    • Handle: RePEc:bla:jecsur:v:23:y:2009:i:5:p:856-881
    DOI: 10.1111/j.1467-6419.2009.00604.x
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    References listed on IDEAS

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    Cited by:

    1. Bertazzi, Ilaria, 2014. "A challenge to normativity and economic theory, the case ofdebtors movements," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201405, University of Turin.
    2. Ugo Panizza, 2013. "Do We Need a Mechanism for Solving Sovereign Debt Crises? A Rule-Based Discussion," IHEID Working Papers 03-2013, Economics Section, The Graduate Institute of International Studies.
    3. Heinz-Dieter Smeets & Angélique Herzberg, 2010. "Staatliche Insolvenz in einer Währungsunion," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 65(4), pages 379-399, December.

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