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Towards a sovereign bankruptcy procedure and greater restraint in IMF crisis lending. An interim assessmen

Author

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  • Curzio Giannini

    (Banca d'Italia, Ufficio Relazioni Internazionali, Roma (Italy))

Abstract

The paper reviews the area of the international financial architecture relating tosovereign crisis resolution. It is argued that shifting part of the burden of crisisresolution onto creditors may encourage debtor countries to take early action to counter an unsustainable debt path. Collective action clauses, the sovereign debt restructuring mechanism, and ceilings on IMF loans, are all necessary components of a new and better crisis resolution framework.

Suggested Citation

  • Curzio Giannini, 2003. "Towards a sovereign bankruptcy procedure and greater restraint in IMF crisis lending. An interim assessmen," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 56(225), pages 83-112.
    • Handle: RePEc:psl:bnlqrr:2003:21
    as

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    File URL: http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/9894/9776
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    References listed on IDEAS

    as
    1. Andy Haldane & Mark Kruger, 2002. "The Resolution of International Financial Crises: Private Finance and Public Funds," Bank of Canada Review, Bank of Canada, vol. 2001(Winter), pages 3-13.
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    6. Mr. Carlo A Sdralevich & Mr. Biaggio Bossone, 2002. "The New Approach to Sovereign Debt Restructuring: Setting the Incentives Right," IMF Policy Discussion Papers 2002/004, International Monetary Fund.
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    More about this item

    Keywords

    Debt; IMF; Lending;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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