Publication

This paper provides an overview of the main issues, debates and policy proposals that surround sovereign debt restructuring. More specifically, the authors discuss 1) the basics of sovereign debt restructuring, including what it involves and when it has occurred; 2) events and developments that have motivated discussions over how to improve sovereign defaults and debt restructurings, such as the eurozone debt crisis and litigation against Argentina over its debt obligations; 3) the major arguments for and against creating new institutional arrangements to facilitate sovereign debt restructurings; 4) what types of reforms are needed; and 5) examples of specific proposals that have been put forward for reform.