Trichet brings SDRM down to earth

- Central Banking staff
- 16 Jun 2003

The IMF's much-vaunted Sovereign Debt Restructuring Mechanism is the latest casualty in a string of apparently wasted efforts in attempting to find some way to save the world from the terrors of sovereign default. But a few months ago Banque de France governor Jean-Claude Trichet came up with a more practical solution. The Banque de France proposed a "Code of Good Conduct" for sovereign debt restructuring, which avoids making pie-in-the-sky assumptions that blanket laws across the world would be easy to introduce. The BdF's code seems to make more sense than most suggestions so far.

Certainly, sentiments in emerging markets are favourable towards the French proposal. Chief economist of the Brazilian central bank Ilan Goldfajn expressed optimism to Newsmakers over the new plans, cautioning that forcing creditors into things is no way to go about business. Moreover, following the a recent meeting in Berlin this week, the BdF initiative is now being taken forward by Jacques de Larosiere, an old comrade-in-arms of Trichet's.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: www.centralbanking.com/subscriptions

You are currently unable to print this content. Please contact info@centralbanking.com to find out more.

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.

If you would like to purchase additional rights please email info@centralbanking.com

You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.

If you would like to purchase additional rights please email info@centralbanking.com