Part I Sovereign Debt Restructuring, 7 The Longer-Term Consequences of Sovereign Debt Restructuring »
Odette LienauFrom: Sovereign Debt Management
Edited By: Rosa M Lastra, Lee Buchheit
7.01 Sovereign borrowers contemplating a debt restructuring often do so in the context of a current or impending financial crisis or a broader economic upheaval. Government officials feel that they have no choice but to act quickly, and the subsequent discussion with advisers, other domestic actors, and creditors focuses on which calculations and techniques to use. When officials do take a moment to prepare for the long-run effects of their decisions—as they certainly should—they may well come across alarming headlines, such as this example from the web journal...