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His paper reviews the recent application of the Fund's policies and practices on sovereign debt restructuring. Specifically, the paper: -- recaps in a holistic manner the various policies and practices that underpin the Fund's legal and policy framework for sovereign debt restructuring, including on debt sustainability, market access, financing assurances, arrears, private sector involvement (PSI), official sector involvement (OSI), and the use of legal instruments; -- reviews how this framework has been applied in the context of Fund-supported programs and highlights the issues that have emerged in light of recent experience with debt restructuring; and -- describes recent initiatives in various fora aimed at promoting orderly sovereign debt restructuring, highlighting differences with the Fund's existing framework. Based on this stocktaking, the paper identifies issues that could be considered in further depth in follow-up work by staff to assess whether the Fund's framework for debt restructuring should be adapted: -- first, debt restructurings have often been too little and too late, thus failing to re-establish debt sustainability and market access in a durable way. Overcoming these problems likely requires action on several fronts, including (i) increased rigor and transparency of debt sustainability and market access assessments, (ii) exploring ways to prevent the use of Fund resources to simply bail out private creditors, and (iii) measures to alleviate the costs associated with restructurings; -- second, while creditor participation has been adequate in recent restructurings, the current contractual, market-based approach to debt restructuring is becoming less potent in overcoming collective action problems, especially in pre-default cases. In response, consideration could be given to making the contractual framework more effective, including through the introduction of more robust aggregation clauses into international sovereign bonds bearing in mind the inter-creditor equity issues that such an approach may raise. The Fund may also consider ways to condition use of its financing more tightly to the resolution of collective action problems; -- third, the growing role and changing composition of official lending call for a clearer framework for official sector involvement, especially with regard to non-Paris Club creditors, for which the modality for securing program financing commitments could be tightened; and -- fourth, although the collaborative, good-faith approach to resolving external private arrears embedded in the lending into arrears (LIA) policy remains the most promising way to regain market access post-default, a review of the effectiveness of the LIA policy is in order in light of recent experience and the increased complexity of the creditor base. Consideration could also be given to extending the LIA policy to official arrears.

Fiscal policy. --- Sovereign debt.

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Deze masterproef onderzoekt de invloed van credit downgrades uitgegeven door kredietbeoordelaars, zoals Moody's, Fitch en S&P, op de Europese obligatiemarkt. De focus ligt voornamelijk op het concept van financiële besmetting. Aan de hand van een algemene regressie wordt de invloed van een negatieve kredietscore op de nationale obligatiemarkt onderzocht. Vervolgens wordt via een event study de invloed van diezelfde kredietwijziging aangetoond op de volledige Europese obligatiemarkt. Het eindresultaat bleek significant. Door de recente politieke en financiële eenmaking in Europa worden nationale schokken inderdaad doorgegeven aan andere lidstaten waarop de schok de facto niet van toepassing is. Er is sprake van financiële besmetting op de Europese obligatiemarkt.

Credit rating changes. --- Economische systemen. --- Sovereign bond yield spread. --- Sovereign debt crisis. --- Spillover effects.

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This paper focuses on developments in the European Economic and Monetary Union sovereign debt markets in the past decade. The first part analyzes the integration and segmentation structure of the bond markets of the Economic and Monetary Union b

European Economic And Monetary Union --- Monetary Policy --- Network Analysis --- Sovereign Debt --- Tapering

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This paper surveys early intellectual antecedents of the Krueger (2001) proposal for creating bankruptcy reorganization procedures at the international level. We focus on actual proposals for new procedures made from the late 1970s up to an influential lecture by Sachs (1995), with brief reference to the formal economics literature on sovereign debt. Beginning with a paper by Oechsli (1981), several key contributions are made during this period, including the analogy with domestic bankruptcy procedures, an understanding of the inefficiencies in international lending that might justify such procedures, and specific institutional and legal suggestions that continue to play a role in the current debate.

Financial Risk Management --- Debt --- Debt Management --- Sovereign Debt --- Financial Crises --- Finance --- Economic & financial crises & disasters --- Financial crises --- Debt restructuring --- Sovereign debt restructuring --- Debt renegotiation --- Debt rescheduling --- Asset and liability management --- Debts, External --- Costa Rica

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Risk management has become an increasingly important tool for achieving strategic debt targets, and is now an integral part of a wider strategic debt management framework based on benchmarks in most jurisdictions. However, this study shows that the extent and sophistication of risk management vary widely across countries. This study brings together a number of recent reports on best practices for managing market risk, credit risk, operational risk and contingent liability risk. It was prepared by a group of authors from the OECD Working Party on Public Debt Management, and includes case-studies of risk management practices in selected OECD debt markets.--Publisher's description.

Debts, Public --- Debts, Government --- Government debts --- National debts --- Public debt --- Public debts --- Sovereign debt --- Debt --- Bonds --- Deficit financing