Jump to ContentJump to Main Navigation
Too Little, Too LateThe Quest to Resolve Sovereign Debt Crises$
Users without a subscription are not able to see the full content.

Martin Guzman, José Antonio Ocampo, and Joseph E. Stiglitz

Print publication date: 2016

Print ISBN-13: 9780231179263

Published to Columbia Scholarship Online: January 2017

DOI: 10.7312/columbia/9780231179263.001.0001

Show Summary Details

Creditor Committees in Sovereign Debt Restructurings

Creditor Committees in Sovereign Debt Restructurings

Understanding the Benefits and Addressing Concerns

Chapter:
(p.175) Chapter 9 Creditor Committees in Sovereign Debt Restructurings
Source:
Too Little, Too Late
Author(s):

Timothy B. DeSieno

Publisher:
Columbia University Press
DOI:10.7312/columbia/9780231179263.003.0010

The chapter makes three points regarding recent improvements for sovereign debt contracts suggested by the International Capital Market Association (ICMA), which were later endorsed by the IMF. First, he argues that the new clauses are a useful and potentially important instrument to deal with the problem of holdout creditors. Second, he claims the new clauses are not a panacea. This assessment reflects the fact that it will take some time for these clauses to be embedded in the stock of outstanding bonds and that, whatever their merits, the new clauses do not fully address the issues of unenforceability and discharge of sovereign debts. Third, the debate between voluntary/contractual and statutory approaches is a false dichotomy. Contractual approaches will necessarily be incomplete and the design of “institutions,” whether bankruptcy provisions embodied in formal treaty or the responses of existing international financial institutions, will influence the outcome of sovereign debt restructurings.

Keywords:   Debt contracts, Coase, Sovereign Debt Restructuring

Columbia Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .