IMF Working Papers

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

By Jeromin Zettelmeyer, Kenneth Rogoff

August 1, 2002

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Jeromin Zettelmeyer, and Kenneth Rogoff. Bankruptcy Procedures for Sovereigns: A History of Ideas, 1976-2001, (USA: International Monetary Fund, 2002) accessed November 8, 2024
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.

Subject: Asset and liability management, Debt renegotiation, Debt rescheduling, Debt restructuring, Financial crises, Legal support in revenue administration, Revenue administration

Keywords: Bankruptcy court, Chapter 11, Creditor-debtor negotiations, Debt contract, Debt crises, Debt crisis, Debt problem, Debt renegotiation, Debt rescheduling, Debt restructuring, Debt workout mechanism, Debtor incentive, Debt-reduction scheme, IMF article, IMF crisis loan, International bankruptcy court, Legal support in revenue administration, Litigation case, Payments moratorium, Sovereign bankruptcy, Workout mechanism, WP

Publication Details

  • Pages:

    46

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2002/133

  • Stock No:

    WPIEA1332002

  • ISBN:

    9781451855500

  • ISSN:

    1018-5941

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