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Sovereign Debt Restructuring Mechanisms: Trends, Tools, And Global Case Studies
[Mécanismes De Restructuration De La Dette Souveraine : Tendances, Outils Et Études De Cas Internationales]

Author

Listed:
  • Mykhailo Hantsiak

    (State Research Institute for Informatization and Economic Modeling)

Abstract

Ukraine's debt crisis has intensified, reflected in rising public liabilities, a widening budget deficit, and growing pressure on public finances. Limited domestic funding sources force the state to borrow actively on the debt market, exceeding safe thresholds and increasing insolvency risks. Under these conditions, sovereign debt restructuring becomes a crucial tool to prevent financial destabilization. The study identifies key principles for implementing restructuring mechanisms based on global experience and develops recommendations for their adaptation to Ukraine's context. Using official statistical data, analytical reports, and international case studies, the research demonstrates that the effectiveness of restructuring depends on the depth of debt condition adjustments and coordination with creditors. The role of structural reforms and fiscal consolidation is emphasized. It is concluded that adapting the best international practices is essential to strengthen Ukraine's public debt sustainability.

Suggested Citation

  • Mykhailo Hantsiak, 2025. "Sovereign Debt Restructuring Mechanisms: Trends, Tools, And Global Case Studies [Mécanismes De Restructuration De La Dette Souveraine : Tendances, Outils Et Études De Cas Internationales]," Post-Print hal-05355399, HAL.
    • Handle: RePEc:hal:journl:hal-05355399
    DOI: 10.29038/2786-4618-2025-03-36-43
    Note: View the original document on HAL open archive server: https://hal.science/hal-05355399v2
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    References listed on IDEAS

    as
    1. Law, Siong Hook & Ng, Chee Hung & Kutan, Ali M. & Law, Zhi Kei, 2021. "Public debt and economic growth in developing countries: Nonlinearity and threshold analysis," Economic Modelling, Elsevier, vol. 98(C), pages 26-40.
    2. Checherita-Westphal, Cristina & Rother, Philipp, 2012. "The impact of high government debt on economic growth and its channels: An empirical investigation for the euro area," European Economic Review, Elsevier, vol. 56(7), pages 1392-1405.
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