This chapter reviews selected Caribbean debt restructuring cases. In particular, it deals with three interrelated policy questions. First, it delineates the history of resolving debt overhangs in emerging market and low-income economies generally. Second, it reviews selected Caribbean experiences with debt restructuring and associated challenges in the region. And third, it examines the needs for additional traditional debt restructuring in Caribbean economies, along with some alternative options and the role that the IMF can play in helping to restore the region’s fiscal and debt sustainability.
For the purposes of this discussion, the Dominican Republic and Haiti have not been included. Some parts of this chapter draw on Gold and others (2012). The chapter has benefited from some very useful suggestions and comments from Takahiro Tsuka and Charles Kramer.