These instruments provide flexibility on debt-service payments and can help bridge differences in restructuring talks. Protracted talks delay critical structural reforms and increase default risk.  

Guest: David Rogovic, Vice President – Senior Credit Officer, Sovereign Risk Group, Moody’s Investors Service

Host: Scott Phillips, Associate Managing Director, Emerging Markets, Moody’s Investors Service

Related Research:

• State-contingent debt instruments can aid debt restructuring, but can carry fiscal risks