EMTA Special Seminar: Sovereign Debt Restructuring: A Better Way Forward?

After the IMF’s proposal a decade ago for a Sovereign Debt Restructuring Mechanism (SDRM), and the adoption of the IIF's Principles for Stable Capital Flows and Fair Debt Restructuring and inclusion of collective action clauses (CACs) in EM bond issues, there have been various official sector and academic concerns about the existing mechanisms for restructuring sovereign bonds, particularly in response to developments in the European sovereign debt markets and pending litigation against Argentina. On October 16, EMTA presented a panel of sovereign debt experts, who described a variety of current proposals, including those being discussed within the IMF, to reform aspects of the international architecture for restructuring sovereign bonds. On November 5, another panel, composed of leading private sector representatives, gave their views on these proposals.