What life after default? Time horizons and the outcome of the Argentine debt restructuring deal
Bibliographic Data
| ID | 12316675 |
|---|---|
| Authors | Giselle Datz (0000-0002-4585-7759, Virginia Tech, corresponding author) |
| Year | 2009 |
| Volume | 16 |
| Issue | 3 |
| Pages | 456-484 |
| Publication date | 2009-09-10 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Review of International Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0969-2290 • E-ISSN: 1466-4526 |
| Publisher | Routledge (PUBLISHER • GB) |
| DOI | 10.1080/09692290802454653 |
| OpenAlex | W2043956124 |
| Language | EN |
| Citations received | 8 |
| References cited | 24 |
Although a recurrent phenomenon, sovereign debt restructurings following defaults on debt obligations do not engender today the exact same dynamics they did in the past. On the one hand, prevalent reputational models have overestimated the costs of default in terms of access to new credit. On the other hand, debtors' restructuring strategies have been underestimated in the face of anticipated constraints on developing countries' policy autonomy believed to flow from financial globalization. By focusing on the latest Argentine debt restructuring (the largest and most complex in history to date), I find that the outcome of sovereign debt restructurings in terms of credit (re)access are much less contingent on market punishments based on reputations than on the short-term nature of financial incentives in the bond industry as well as on international lending cycles. Time horizons play a crucial role in how debtors take advantage of different creditors' incentives to participate in a restructuring. A critical implication is that governments have more room to maneuver in taking contentious policy stances (such as stringent debt restructuring deals) than the literature on economic globalization accounts for. Also, far from a zero-sum game, for both debtors and some of their creditors, debt restructurings can prove to be attractive deals for their specific purposes
Creditor · Debt · Debt restructuring · Default · Economics · External debt · Financial system · Incentive · Market economy · Monetary economics · Restructuring · Sovereign debt · Sovereign default · Sovereignty · Banking stability, regulation, efficiency · Fiscal Policies and Political Economy · Global Financial Crisis and Policies · Finance
Global Capital and National Governments
Debt with Potential Repudiation
The new wave of private capital inflows
The Strange Story of Bush and the Argentine Debt Crisis
And the Money Kept Rolling in (And out)
Argentina and the Fund
Bailouts or Bail-Ins? Responding to Financial Crises in Emerging Economies
Argentina, elecciones legislativas 2005
Historical Research on International Lending and Debt
The International Debt Crisis in Historical Perspective
| Unique citing works | 8 |
|---|---|
| Citations per year | 0,47 |
| Citation span | 2009 - 2022 (14) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 8 |