Dealing with Private Debt Distress in the Wake of the European Financial Crisis A Review of the Economics and Legal Toolbox

 
Author/Editor: Liu, Yan ; Rosenberg, Christoph
 
Publication Date: February 20, 2013
 
Electronic Access: Free Full text (PDF file size is 1,110KB).
Use the free Adobe Acrobat Reader to view this PDF file

 
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: The private non-financial sector in Europe is facing increased challenges in meeting its debt servicing obligation. In response, governments are revisiting legal tools and—in some cases—institutional arrangements to deal with over-indebtedness. For households, where the problem in some countries is large but no established best practice exists, reforms have generally sought to allow debtors a fresh start while minimizing moral hazard and preserving bank solvency and credit discipline. For the corporate sector, efforts have focused on facilitating debt restruturing (including through out of court mechanisms). Direct government intervention has been rare.
 
Series: Working Paper No. 13/44
Subject(s): Financial crisis | Europe | Private sector | Corporate sector | Debt burden | Debt restructuring | Cross country analysis

 
English
Publication Date: February 20, 2013
ISBN/ISSN: 9781475544305/2227-8885 Format: Paper
Stock No: WPIEA2013044 Pages: 21
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
Please address any questions about this title to publications@imf.org