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In the quest of a Framework for Sovereign Debt Restructuring

Author

Listed:
  • Martín Guzmán

    (Instituto Interdisciplinario de Economía Política de Buenos Aires - UBA - CONICET)

Abstract

Judge Thomas Griesa’s recent ruling in Argentina’s case has raised enormous questions in sovereign debt markets. The case is a symptom of the current flawed market-based system for resolving sovereign debt crises. It raises fundamental issues that the global community is addressing. This article provides background for the ongoing debate on how to fix the frameworks for sovereign debt restructuring. It focuses on three sets of questions: 1) Are there quick fixes, e.g. restoring concepts such as sovereign immunity, or improvements in the private contractual approach? 2) What are the most important improvements in the private contractual approach? To what extent will these solve the problem? Are they politically achievable? 3) To the extent that quick fixes and private contractual approaches do not do the tricks, there is an obvious need for a more collective approach. What would an ideal solution look like? Are there halfway houses, politically achievable?

Suggested Citation

  • Martín Guzmán, 2015. "In the quest of a Framework for Sovereign Debt Restructuring," Documentos de trabajo del Instituto Interdisciplinario de Economía Política IIEP (UBA-CONICET) 2015-7, Universidad de Buenos Aires, Facultad de Ciencias Económicas, Instituto Interdisciplinario de Economía Política IIEP (UBA-CONICET).
    • Handle: RePEc:ake:iiepdt:20157
    as

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    References listed on IDEAS

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    8. Sebastian Galiani & Daniel Heymann & Mariano Tommasi, 2003. "Great Expectations and Hard Times: The Argentine Convertibility Plan," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 109-160, January.
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    Cited by:

    1. Joseph E. Stiglitz, 2017. "The Revolution of Information Economics: The Past and the Future," NBER Working Papers 23780, National Bureau of Economic Research, Inc.
    2. Guzman Martin & Heymann Daniel, 2015. "The IMF Debt Sustainability Analysis: Issues and Problems," Journal of Globalization and Development, De Gruyter, vol. 6(2), pages 387-404, December.
    3. Brooks Skylar & Lombardi Domenico, 2015. "Governing Sovereign Debt Restructuring Through Regulatory Standards," Journal of Globalization and Development, De Gruyter, vol. 6(2), pages 287-318, December.
    4. Mooney Charles W., 2015. "A No-Tribunal SDRM and the Means of Binding Creditors to the Terms of a Restructuring Plan," Journal of Globalization and Development, De Gruyter, vol. 6(2), pages 215-238, December.
    5. Stiglitz, J.E., 2016. "An agenda for sustainable and inclusive growth for emerging markets," Journal of Policy Modeling, Elsevier, vol. 38(4), pages 693-710.
    6. Schwarcz Steven L., 2015. "Sovereign Debt Restructuring: A Model-Law Approach," Journal of Globalization and Development, De Gruyter, vol. 6(2), pages 343-385, December.

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    More about this item

    Keywords

    Sovereign Debt; Restructuring; Contractual Approach; Statutory Approach;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law

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