## Government Involvement in Corporate Debt Restructuring: Case Studies from the Great Recession

_IMF Working Papers, November 1, 2010_

## Source details

**Canonical URL:** [Government Involvement in Corporate Debt Restructuring: Case Studies from the Great Recession](https://www.imf.org/en/publications/wp/issues/2016/12/31/government-involvement-in-corporate-debt-restructuring-case-studies-from-the-great-recession-24365)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/government-involvement-in-corporate-debt-restructuring-case-studies-from-the-great-recession-24365/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/31/government-involvement-in-corporate-debt-restructuring-case-studies-from-the-great-recession-24365/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/31/government-involvement-in-corporate-debt-restructuring-case-studies-from-the-great-recession-24365/bundle-manifest.json)

## Bibliographic details
- Authors: David A. Grigorian, Faezeh Raei
- Published: November 1, 2010
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455209606.001

---

### Summary and scope
- Examines recent episodes of government involvement in corporate debt restructurings.
- Argues that corporate debt restructuring is an important step toward recovery from a financial crisis.
- Discusses the rationale for, and modalities of, state intervention in corporate debt workouts through reviewing six countries with large scale corporate debt workouts.
- Highlights that contingent liabilities and associated risks to government balance sheet from the corporate debt side are important and require improved contingency planning for corporations with potential systemic impact.

### Key findings from case studies
- Case studies reveal that the costs of corporate sector rescue are significant.
- In several cases, the costs of corporate sector rescue are on par with the costs of financial sector bailouts.
- Emphasizes the fiscal significance of contingent liabilities arising from corporate debt interventions.

### Policy implications and recommendations
- Corporate debt restructuring is a necessary component of recovery policies after financial crises.
- State intervention in corporate debt workouts should be guided by clear rationale and well-defined modalities.
- Governments need improved contingency planning for corporations with potential systemic impact to manage contingent liabilities and balance-sheet risks.

### Publication and metadata
- Authors: David A. Grigorian, Faezeh Raei
- Date: November 1, 2010
- Series: Working Paper No. 2010/260
- Issue: 260
- Volume: 2010
- Pages: 34
- DOI: https://doi.org/10.5089/9781455209606.001
- Stock No: WPIEA2010260
- ISBN: 9781455209606
- ISSN: 1018-5941
- Subjects: Banking, Commercial banks, Debt restructuring, Financial crises, Loans
- Keywords: balance sheet, banking sector, financial support, foreign currency, WP

*Source: David A. Grigorian and Faezeh Raei, "Government Involvement in Corporate Debt Restructuring: Case Studies from the Great Recession", IMF Working Papers 2010, 260 (2010), November 1, 2010.*

---

## Content in this bundle

- **Wp10260**
  - [Wp10260 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2010/_wp10260.pdf.md){rel="alternate" type="text/markdown"}
  - [Wp10260 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2010/_wp10260.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/government-involvement-in-corporate-debt-restructuring-case-studies-from-the-great-recession-24365_