Strengthening the Contractual Framework to Address Collective Action Problems in Sovereign Debt Restructuring
Policy Papers, September 2, 2014
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- Strengthening the Contractual Framework to Address Collective Action Problems in Sovereign Debt Restructuring
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Bibliographic details
- Published: September 2, 2014
- Series: Policy Papers
- Stock No: ISBN
Summary
- This paper identifies contractual reforms designed to address collective action problems in sovereign debt restructuring.
- Since any decisions regarding the design of contractual provisions will need to be made by the sovereign issuer and its creditors, it is recognized that the Fund’s primary role will be to facilitate agreement on the design and use of these provisions.
Key themes and findings
- Contractual reforms are proposed to address collective action problems in sovereign debt restructuring.
- The design and use of contractual provisions are decisions for sovereign issuers and their creditors.
- The IMF’s role is framed primarily as a facilitator to help achieve agreement on the design and use of these contractual provisions.
Actionable implications and policy role
- Sovereign issuers and creditors are the principal decision-makers for contractual design and adoption.
- The IMF can facilitate negotiations and consensus-building around contractual reforms intended to mitigate collective action problems in sovereign debt restructurings.
Source: https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/strengthening-the-contractual-framework-to-address-collective-action-problems-in-sovereign-pp4911