{
  "title": "Restructuring Domestic Sovereign Debt: An Analytical Illustration",
  "publication": "IMF Working Papers, February 3, 2023",
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  "summary": "Sovereign domestic debt restructurings have become more common in recent years and touched upon a growing share of total public debt.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Sovereign domestic debt restructurings have become more common in recent years and touched upon a growing share of total public debt.\n- The paper offers a simple framework for policymakers to evaluate whether to restructure domestic sovereign debt as part of efforts to reduce overall public indebtedness.\n- It highlights a wide range of technical, legal, and operational issues a sovereign may face while restructuring domestic debt.\n- Key inputs into the restructuring decision include:\n  - debt reduction required to achieve sustainability,\n  - fiscal savings from a restructuring,\n  - economic costs of a restructuring,\n  - composition of debt,\n  - financial stability costs,\n  - crisis preparedness."
    },
    {
      "heading": "Key findings and analytical framework",
      "content": "- Presents a simple decision framework for policymakers considering domestic sovereign debt restructuring.\n- Emphasizes that while fiscal arithmetic (debt reduction and fiscal savings) is central, non-quantitative factors (debt composition, financial stability implications, crisis preparedness) materially affect the decision.\n- Highlights the range of technical, legal, and operational challenges that can arise in domestic restructurings and the importance of accounting for these in policy design."
    },
    {
      "heading": "Factors for policymakers to weigh",
      "content": "- Debt reduction required to achieve sustainability.\n- Fiscal savings from restructuring operations.\n- Economic costs associated with restructuring.\n- Composition of debt (domestic vs. external, instrument types).\n- Financial stability costs and systemic risk considerations.\n- Crisis preparedness and operational readiness to implement restructurings."
    },
    {
      "heading": "Technical, legal, and operational issues (as discussed in the paper)",
      "content": "- A wide range of issues may arise, including:\n  - technical design of restructuring instruments and exchanges,\n  - legal frameworks governing domestic debt and creditor rights,\n  - operational capacity to execute restructurings, and\n  - interaction with financial sector stability and macroeconomic policy."
    },
    {
      "heading": "Publication and metadata",
      "content": "- Author: David A. Grigorian\n- Date: February 3, 2023\n- Series: Working Paper No. 2023/024\n- Volume: 2023\n- Issue: 024\n- Pages: 29\n- DOI: https://doi.org/10.5089/9798400232541.001\n- Stock No: WPIEA2023024\n- ISBN: 9798400232541\n- ISSN: 1018-5941\n- Subjects: Asset and liability management; Debt relief; Debt restructuring; Domestic debt; Public debt; Sovereign debt restructuring\n- Keywords: DDR Laffer Curve; Debt relief; debt relief calculation; debt relief target; Debt restructuring; Domestic debt; Domestic debt restructuring; Europe; net debt relief; restructuring Laffer Curve; sovereign debt; Sovereign debt restructuring\n\nIMF Working Paper — Restructuring Domestic Sovereign Debt: An Analytical Illustration (David A. Grigorian, February 3, 2023).\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2023/02/03/restructuring-domestic-sovereign-debt-an-analytical-illustration-529112"
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    "Authors: David A. Grigorian",
    "Published: February 3, 2023",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400232541.001",
    "Sovereign domestic debt restructurings have become more common in recent years and touched upon a growing share of total public debt.",
    "The paper offers a simple framework for policymakers to evaluate whether to restructure domestic sovereign debt as part of efforts to reduce overall public indebtedness.",
    "It highlights a wide range of technical, legal, and operational issues a sovereign may face while restructuring domestic debt.",
    "Key inputs into the restructuring decision include:",
    "Presents a simple decision framework for policymakers considering domestic sovereign debt restructuring.",
    "Emphasizes that while fiscal arithmetic (debt reduction and fiscal savings) is central, non-quantitative factors (debt composition, financial stability implications, crisis preparedness) materially affect the decision.",
    "Highlights the range of technical, legal, and operational challenges that can arise in domestic restructurings and the importance of accounting for these in policy design.",
    "Debt reduction required to achieve sustainability.",
    "Fiscal savings from restructuring operations.",
    "Economic costs associated with restructuring.",
    "Composition of debt (domestic vs. external, instrument types).",
    "Financial stability costs and systemic risk considerations.",
    "Crisis preparedness and operational readiness to implement restructurings.",
    "A wide range of issues may arise, including:",
    "Author: David A. Grigorian",
    "Date: February 3, 2023",
    "Series: Working Paper No. 2023/024",
    "Volume: 2023",
    "Issue: 024",
    "Pages: 29",
    "DOI: https://doi.org/10.5089/9798400232541.001",
    "Stock No: WPIEA2023024",
    "ISBN: 9798400232541",
    "ISSN: 1018-5941",
    "Subjects: Asset and liability management; Debt relief; Debt restructuring; Domestic debt; Public debt; Sovereign debt restructuring",
    "Keywords: DDR Laffer Curve; Debt relief; debt relief calculation; debt relief target; Debt restructuring; Domestic debt; Domestic debt restructuring; Europe; net debt relief; restructuring Laffer Curve; sovereign debt; Sovereign debt restructuring",
    "**Working Paper**"
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