Tag Archives: Debt restructuring

[embedded content] Short interview for an Argentinean radio show, in Spanish.

[embedded content] My interview on Led.fm with María Iglesia and Cecília Camarano for the program Reperfiladas (in Spanish, obviously) on the Argentinean debt restructuring.

JOSEPH E. STIGLITZ, EDMUND S. PHELPS, CARMEN M. REINHARTArgentina's creditors are being asked to accept a proposal that would reduce their revenue stream but make it sustainable. A responsible resolution will set a positive precedent, not only for Argentina, but for the international financial system as a whole.Read rest and list of signatures here.

In the end, while standard macroeconomic reforms may work in theory -- albeit under an unrealistic set of assumptions -- they’ve never worked in practice. Rather than eliminating the controls that protect China from a financial crisis, leaders should confront their debt problem head-on and begin deleveraging. For that to happen, it would help if the decision-making process were more, not less centralised. Only forceful action from the top can overcome the tremendously powerful vested...

If Argentina finalizes an agreement with the holdouts, the so-called Vultures, it will close a long process that started with default in 2002, and was followed by renegotiations with about 93% of bondholders in 2005 and 2010. How fast has this process been when compared to other debt rescheduling processes? Figure below by Christian Suter (subscription required) looks at the average duration of defaults on foreign bonds in three different periods. Even though it misses the debt crisis of the...