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Draft Proposal for a Foreign Sovereign Debt Restructuring Law

Reflecting widespread concern as to the effectiveness of the G20 Common Framework, the paper presents a short proposal for domestic legislation to facilitate the enforcement of automatic stays and comparable treatment of private creditors in sovereign debt restructurings. It builds on recent recommendations from the IMF and the World Bank for the implementation and expansion of the Common Framework, and on increasing support from practitioners and academics for domestic legislation as a crucial element for the improvement of the international financial architecture.