Sovereign Domestic Debt Restructuring: Handle with Care

As emerging and developing economies accumulate more domestic sovereign debt, it is likely to play a larger role in the resolution of future sovereign debt crises. IMF economists and lawyers Peter Breuer, Chief, Debt Capital Markets Division, Monetary and Capital Market Department, Anna Ilyina, Assistant Director, Strategy, Policy and Review Department, and Hoang Pham, Deputy Unit Chief, Legal Department, present key findings from a recent IMF Policy Paper 2021/071, which analyzes when and how to restructure sovereign domestic debt in unsustainable debt cases, while minimizing economic and financial disruptions. Carmen Reinhart, Senior Vice President and Chief Economist, World Bank Group, Yannis Manuelides, Partner, Allen & Overy, and Roberto H. Sifon Arevalo, Managing Director, Chief Analytical Officer, Sovereign & IPF Ratings, S&P Global discuss the authors’ analysis and recommendations and offer their own global policy, legal and rating agency perspectives.  Moderation by Isabel Vansteenkiste, DG, International and European Relations, ECB  and SUERF.