Bankruptcy Proceedings for Sovereign State Insolvency and their Effect on Capital Flows

Jonathan Thomas

Edinburgh School of Economics Discussion Paper Series from Edinburgh School of Economics, University of Edinburgh

Abstract: The paper examines the main issues involved in translating domestic bankruptcy procedures to the sovereign context. It considers some of the principles by which domestic bankruptcy procedures operate, and the extent to which they apply to international lending. Two recent proposals are considered in more detail, that of Krueger (2001) and that of Pettifor (2002). The paper also considers the question of the ex ante effects of a procedure which makes default less costly, and concludes that despite a negative impact on the ability to borrow, the overall welfare effect need not be negative.

Keywords: sovereign debt; bankruptcy; capital flows (search for similar items in EconPapers)
JEL-codes: F34 (search for similar items in EconPapers)
Pages: 37
Date: 2002-11
New Economics Papers: this item is included in nep-ifn
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http://www.econ.ed.ac.uk/papers/id93_esedps.pdf

Related works:
Journal Article: Bankruptcy proceedings for sovereign state insolvency and their effect on capital flows (2004)
Working Paper: Bankruptcy Proceedings for Sovereign State Insolvency and their Effect on Capital Flows (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:edn:esedps:93

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