14min chapter

The Emerging Markets Podcast by Tellimer cover image

Lee Buchheit and Patrick Curran discuss value recovery mechanisms and recent developments in the sovereign debt restructuring landscape

The Emerging Markets Podcast by Tellimer

CHAPTER

Navigating Sovereign Debt Restructuring

This chapter examines the intricate landscape of sovereign debt restructuring, drawing on historical cases to highlight the challenges of creditor comparability and information asymmetries in negotiations. It critiques existing frameworks like the Paris Club's principles, arguing for a standardized approach to ensure fair treatment across different creditor types. The discussion also sheds light on Ethiopia's debt scenario and the evolving dynamics between private and official creditors, emphasizing the need for economic incentives to resolve prolonged defaults.

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