The role of state-contingent debt instruments in sovereign debt restructurings

Charles Cohen, S. Ali Abbas, Myrvin Anthony, Tom Best, Peter Breuer, Hui Miao, Alla Myrvoda, and Eriko Togo

The COVID-19 crisis may lead to a series of costly and inefficient sovereign debt restructurings. Any such restructurings will likely take place during a period of great economic uncertainty, which may lead to protracted negotiations between creditors and debtors over recovery values, and potentially even relapses into default post-restructuring. State-contingent debt instruments (SCDIs) could play an important role in improving the outcomes of these restructurings

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Year of publication:	2020
Authors:	Cohen, Charles ; Abbas, S. Ali ; Anthony, Myrvin L. ; Best, Tom ; Breuer, Peter ; Miao, Hui ; Myrvoda, Alla ; Togo, Eriko
Publisher:	[Washington, D.C.] : International Monetary Fund
Subject:	state-contingent debt instruments \| value recovery instruments \| sovereign debt restructuring \| GDP-linked debt \| natural disaster clauses \| debt sustainability \| Öffentliche Schulden \| Public debt \| Schuldenmanagement \| Debt management \| Internationale Staatsschulden \| International sovereign debt \| Umschuldung \| Debt restructuring \| Katastrophe \| Disaster \| Öffentliche Anleihe \| Public bond \| Internationaler Kredit \| International credit