Actions for Sovereign Bond Restructuring [electronic resource]: Collective Action Clauses and Official Crisis Intervention

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Sovereign Bond Restructuring [electronic resource]: Collective Action Clauses and Official Crisis Intervention

Author
Kletzer, Kenneth
Published
Washington : International Monetary Fund June 2003
Physical Description
66 p.
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Summary
Annotation This paper compares the restructuring of sovereign bonds with and without collective action clauses. One conclusion is that collective action clauses can allow efficient debt renegotiation in a formal model of sovereign debt renegotiation while unanimity rules offer incentives for opportunistic behavior by bondholders that leads to inefficient outcomes. with collective action clauses, the mutual gains from renegotiation can be internalized by bondholders so that the holders of each bond issue have incentives to participate in a collective debt restructuring. the analysis abstracts from transactions costs, and the last conclusion might well be sensitive to renegotiation and coordination costs.
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ISBN
9781451900811
1451900813 (E-Book)
View MARC record | catkey: 15224406