BMA and IIF issue new proposals to protect sovereign debt investors

The move was prompted following the high-profile default by Argentina last year, which reignited the issue of how creditors should be paid in the event of a sovereign restructuring.

Abigail McKenna, chairman of the board of the Emerging Markets Creditors Association, which formed part of the group issuing the proposals, said one of the key principles is to have greater transparency in the negotiating process in cases of restructuring. This requires creditors having clearer information on a sovereign’s international reserves. The proposals also push for greater dialogue between the sovereign and investors and creditors to reduce the likelihood of crises.

A further proposal is to enhance the role of trustees to make it easier for creditors to be repaid. The principles, issued today, were set forth in a letter to the G-7 finance ministers and central bank governors.

  • LinkedIn  
  • Save this article
  • Print this page  

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: