Toward a Statutory Approach to Sovereign Debt Restructuring

Toward a Statutory Approach to Sovereign Debt Restructuring
Author :
Publisher : International Monetary Fund
Total Pages : 37
Release :
ISBN-10 : 9781451843026
ISBN-13 : 145184302X
Rating : 4/5 (02X Downloads)

Book Synopsis Toward a Statutory Approach to Sovereign Debt Restructuring by : Mr.Patrick Bolton

Download or read book Toward a Statutory Approach to Sovereign Debt Restructuring written by Mr.Patrick Bolton and published by International Monetary Fund. This book was released on 2003-01-01 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides an overview of key elements of Corporate Bankruptcy Codes and Practice around the world that are relevant to the debate on Sovereign Debt Restructuring. It highlights four components common to most bankruptcy reorganization institutions: a stay on debt collection efforts to prevent a costly run for the assets, broad enforcement of absolute priority, majority voting among creditors on the proposed reorganization plan, and new higher priority financing to keep the firm going while its liabilities are restructured. The paper argues that these components ought to be present in any sovereign debt restructuring procedure.


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