Columbia International Affairs Online: Policy Briefs

CIAO DATE: 04/2015

Identifying and Resolving Inter-creditor and Debtor-Creditor Equity Issues in Sovereign Debt Restructuring

Skylar Brooks, Martin Guzman, Domenico Lombardi, Joseph E. Stiglitz

January 2015

Centre for International Governance Innovation

Abstract

This policy brief draws on a joint workshop with Columbia University on Frameworks for Sovereign Debt Restructuring, held in New York on November 17, 2014. It narrows in on a specific set of salient issues that affect debt restructuring processes and outcomes: those related to inter-creditor and creditor-debtor equity. It also offers a few policy considerations for beginning to resolve these issues in ways that contribute to fairer and more effective debt restructurings.