Private creditors and sovereign default: From Argentina to Greece

Abstract

Argentinas sovereign default in 2001 holds an important lesson for Europeans as they debate Greece’s de facto insolvency and the framework for restructuring government debt. This paper will first survey strategy options for private creditors between mandatory restructuring, litigation and renegotiation. It will then assess market- oriented approaches towards sovereign debt restructuring before the legal framework for crisis management by the IMF and the EU are introduced. A section on the future of private creditor renegotiation concludes.