Delays in Sovereign Debt Restructurings. Should we really blame the creditors?

Konferenzbeitrag

Disorderly debt restructurings can be detrimental for debtor countries and creditors alike. This paper investigates delays in sovereign debt restructurings using a comprehensive new dataset since 1980. Why are some debt crises settled in just a few months, while others take many years? Have creditor coordination problems become more cumbersome in recent years? To answer these and other questions, the study provides ample case study evidence. Moreover, I apply semi-parametric duration models. The results indicate that holdouts, inter-creditor disputes and litigation explain some of the observed restructuring delays. However, government behaviour and political instability appear far more important in explaining lengthy restructurings. The volume of IMF credits has no systematic influence on the speed of crisis resolution.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Proceedings of the German Development Economics Conference, Zürich 2008 ; No. 44

Classification and Topics

• Classification: Wirtschaft ; International Lending and Debt Problems ; International Conflicts; Negotiations; Sanctions ; Duration Analysis; Optimal Timing Strategies
• Subject: Debt Crises ; Debt Restructuring ; Duration Models

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Trebesch, Christoph
• Event: Veröffentlichung
• (who): Verein für Socialpolitik, Ausschuss für Entwicklungsländer
• (where): Göttingen
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/39906
• Last update: 10.03.2025, 11:46 AM CET