Private Creditors and Financing Assurances in Sovereign Debt Restructuring

This chapter explores whether private creditors can provide credible financing assurances in the context of sovereign debt restructuring. It discusses the challenges faced in assessing the process of collective action clauses and highlights the need to improve the efficiency of the restructuring process. The chapter also discusses the idea of using trigger events, such as natural disasters, to determine when a country cannot pay its debts.