Unfinished business on sovereign debt

On June 2 this year, Argentina completed its bond exchange, as part of the largest ever sovereign debt restructuring. However, the final deal came only after more than a year of acrimonious negotiations between Argentina and its creditors, and legal challenges from holdout creditors look set to continue for some time. As this demonstrates, the difficulties and costs of restructuring sovereign debt are considerable. Improving the debt restructuring mechanism could yield significant benefits by re