[Download] "Enhancing Sovereign Debt Restructuring." by The Cato Journal * Book PDF Kindle ePub Free

January 21, 2021

eBook details

Title: Enhancing Sovereign Debt Restructuring.
Author : The Cato Journal
Release Date : January 22, 2003
Genre: Politics & Current Events,Books,
Pages : * pages
Size : 230 KB

Description

Since the early 1980s, patterns of emerging market finance have changed significantly. Greater integration of capital markets and a trend toward a greater use of direct lending through bonds has led to relatively decreased use of indirect finance through syndicated bank loans. These changes have produced benefits to investors through opportunities for risk diversification and to emerging market sovereign borrowers by increasing the investor base. The broadened investor base in bond financing, however, raises problems of coordination and collective action in the event of a sovereign borrower's default and restructuring. Now, three parties are involved in determining the "debt markdown" required to produce solvency--the debtor, creditors, and the global taxpayer through international financial institutions (IFIs).