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The past five years have seen record-breaking restructurings (notably in Greece); new treaties to deal with sovereign debt crises in Europe; spectacular court victories for creditors, notably in the case of Argentina; major institutional reforms addressing debt management at the International Monetary Fund (IMF); and dramatic contract changes, which go beyond anything accomplished since the League of Nations first tackled sovereign debt contracts—a product of collaboration among market participants, the official sector, and issuers ranging from Mexico to Kazakhstan and Vietnam.
And yet, Greece is on edge, struggling to repay its official debt; Argentina’s unpaid debt has quadrupled; Ukraine is looking at another restructuring months after its debt was judged sustainable; and Ecuador has returned to the international markets with great fanfare, only to face a new lawsuit from creditors.
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