Bankruptcy Procedures for Sovereigns : A History of Ideas, 1976-2001

Author/Editor:

Jeronimo Zettelmeyer ; Kenneth Rogoff

Publication Date:

August 1, 2002

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 02/133

Subject:

English

Publication Date:

August 1, 2002

ISBN/ISSN:

9781451855500/1018-5941

Stock No:

WPIEA1332002

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

46

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