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Bankruptcy Procedures for Sovereigns: A History of Ideas, 1976-2001
Author: Mr. Jeromin Zettelmeyer and Mr. Kenneth Rogoff
Series:
IMF Working Papers
Volume/Issue:
Volume 2002: Issue 133
Language:
English
Publication Date:
01 Aug 2002
DOI:
https://doi.org/10.5089/9781451855500.001
ISBN:
9781451855500
ISSN:
1018-5941
Pages:
46
Keywords:
WP; debt crisis; workout mechanism; debt contract; payments moratorium; sovereign bankruptcy; debt crises; international bankruptcy court; Chapter 11; debt-reduction scheme; debtor incentive; bankruptcy court; IMF crisis loan; debt problem; creditor-debtor negotiations; litigation case; debt workout mechanism; IMF article; Debt restructuring; Debt renegotiation; Legal support in revenue administration; Debt rescheduling
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper describes the evolution of ideas to apply bankruptcy reorganization principles to sovereign debt crises. Our focus is on policy proposals between the late 1970s and Anne Krueger's (2001) proposed "Sovereign Debt-Restructuring Mechanism," with brief reference to the economics literature on sovereign debt. We describe the perceived inefficiencies that motivate proposals, and how proposals seek to change debtor and creditor incentives. We find that there has been a moving concensus on what constitutes the underlying problem, but not on how to fix it. The range of proposed approaches remains broad and only recently shows some signs of narrowing.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund