Multinational Finance Journal

Sovereign Debt Sustainability, Debt Relief Initiatives and Restructurings in the COVID-19 Era

Multinational Finance Journal, 2021, vol. 25, no.3/4, pp. 115 -149

Michael G. Papaioannou, International Monetary Fund, USA  and Drexel University, USA

George Tsetsekos, Drexel University, USA

Abstract:

This paper examines the causes, processes, and outcomes of the sovereign debt restructuring episodes that occurred during 2020-2021 in the context of the prevailing IMF sovereign debt restructuring framework and the G20 debt relief initiatives for LICs instituted as a result of the Covid-19 economic implications. The central role of debt sustainability analysis in the IMF sovereign debt restructuring framework is presented for both low-income countries and countries that maintain market access. Based on the observed salient features of the recent restructurings, we point out common traits in the behavior of involved stakeholders and draw lessons on facilitating sovereign and creditor attributes for efficient sovereign debt resolutions.

 

Citation (APA):

Papaioannou, M. G., & Tsetsekos, G. (2021). Sovereign debt sustainability, debt relief initiatives and restructurings in the COVID-19 era. Multinational Finance Journal, 25(3/4), 115–149.

Citation (Harvard):