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

Jeromin Zettelmeyer and Kenneth Rogoff

No 2002/133, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; debt crisis; workout mechanism; debt contract; payments moratorium; sovereign bankruptcy; debt crises; international bankruptcy court; Chapter 11; debt-reduction scheme; debtor incentive; bankruptcy court; IMF crisis loan; debt problem; creditor-debtor negotiations; litigation case; debt workout mechanism; IMF article; Debt restructuring; Debt renegotiation; Legal support in revenue administration; Debt rescheduling (search for similar items in EconPapers)
Pages: 46
Date: 2002-08-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (50)

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Journal Article: Bankruptcy Procedures for Sovereigns: A History of Ideas, 1976-2001 (2002)
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