Sovereign Bond Restructuring : Collective Action Clauses and official Crisis Intervention /

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 beha...

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Bibliografske podrobnosti
Glavni avtor: Kletzer, Kenneth
Format: Revija
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 2003.
Serija:IMF Working Papers; Working Paper ; No. 2003/134
Online dostop:Full text available on IMF
Opis
Izvleček: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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Fizični opis:1 online resource (25 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Dostop:Electronic access restricted to authorized BRAC University faculty, staff and students