Details
Date:
October 19, 2022
Time:
10:00 am - 11:30 am
Course Number:
STR22.14
Application Deadline
October 14, 2022
STI Webinar on Sovereign Debt
Moderator
Ales Bulir, Deputy Director, IMF - Singapore Regional Training Institute
Presenters
Leonardo Martinez, Senior Economist, Institute for Capacity Development, IMF
Francisco Roldán, Economist, Strategy, Policy, & Review Department, IMF
Webinar Description
This webinar will discuss a recent IMF working paper that surveys the literature on sovereign debt. How does sovereign debt differ from private debt? Why sovereign debt is deemed safe in some countries but risky in others? The answers to these questions relate to the unique power of sovereigns. One the one hand, a sovereign has the power to tax, making debt relatively safe. On the other hand, sovereigns also have control over their territory and most of their assets, making debt enforcement difficult. The paper discusses debt contracts and the sovereign debt market, sovereign debt restructurings, and the empirical and theoretical literatures on the costs and causes of defaults. It describes the adverse impact of sovereign default risk on the issuing countries and what explains this impact. The survey concludes with a discussion of policy options to reduce sovereign risk, including fiscal frameworks that act as commitment devices, state-contingent debt, and independent and credible monetary policy.
Registration
To register for this webinar, please complete the online form here by October 14, 2022, 12noon (Singapore Time). Upon successful registration, you will receive email instructions and a link for joining the meeting.
