Chapter

Why the Code of Conduct for Resolving Sovereign Debt Crises Falls Short

Barry Herman

in Overcoming Developing Country Debt Crises

Published in print February 2010 | ISBN: 9780199578788
Published online May 2010 | e-ISBN: 9780191723049 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199578788.003.0014

Series: Initiative for Policy Dialogue

Why the Code of Conduct for Resolving Sovereign Debt Crises Falls Short

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This chapter turns our attention to a reform initiative driven by the private financial community in the form of a voluntary code of good conduct that would informally pressure the debtor countries to follow policies and practices that the creditors advocate. Although implementation of the code is now monitored by a group of prominent individuals from the private and public sectors convoked by an international bankers' organization, it is not clear that it will play a role in any wave of sovereign insolvencies. After all, and unlike a bankruptcy regime, it is purely voluntary. This chapter suggests, instead, how to develop an alternative that would have greater credibility with debtors as well as creditors and could have some force behind it.

Keywords: sovereign debt crises; millennium debt relief initiative; heavily indebted poor countries

Chapter.  18496 words. 

Subjects: Macroeconomics and Monetary Economics

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