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New Financing, Market Stabilization, And Debt-Cutting Techniques In Sovereign Debt Restructurings: The European Perspective, Matteo Mazzoni

matteo mazzoni

As of today there are two major models of sovereign debt restructuring. The first model is offered by the experiences of the Paris Club and the London Club. The second model is based on the active intervention, leadership, and financial support of international institutions, such as the IMF.

The recent experiences of sovereign debt restructurings in the Eurozone follow the second model. However, the first model has also been a source of inspiration. In particular, recourse to the practice of seeking solutions through negotiations has been made in the area of debt-cutting required from the private sector’s bondholders.

Notwithstanding the …

New Financing, Market Stabilization, And Debt-Cutting Techniques In Sovereign Debt Restructurings: The European Perspective, Matteo Mazzoni

matteo mazzoni

As of today there are two major models of sovereign debt restructuring. The first model is offered by the experiences of the Paris Club and the London Club. The second model is based on the active intervention, leadership, and financial support of international institutions, such as the IMF. The recent experiences of sovereign debt restructurings in the Eurozone follow the second model. However, the first model has also been a source of inspiration. In particular, recourse to the practice of seeking solutions through negotiations has been made in the area of debt-cutting required from the private sector’s bondholders. Notwithstanding the …