Sovereign Defaults and Debt Restructurings

[BoyRacer]

Sovereign Defaults and Debt Restructurings: Historical Overview → mitpress.mit.edu/books/chapters/ … chapm1.pdf

Only in the nineteenth century, however, did debt crises, defaults, and debt restructurings—defined as changes in the originally envisaged debt service payments, either after a default or under the threat of default—explode in terms of both numbers and geographical incidence.
This was the by-product of increasing cross-border debt flows, newly independent governments, and the development of modern financial markets. In what follows, we begin with an overview of the main default and debt restructuring episodes of the last two hundred years.1
We next turn to the history of how debt crises were resolved. We end with a brief review of the creditor experience with sovereign debt since the 1850s.

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