Towards a Comprehensive Sovereign Bankruptcy Regime

 The “solutions” are generally put into place with undue lags, causing unnecessary prolongation of uncertainty and attendant economic trauma. And, despite ultimately returning the debtor to new financial flows from its traditional creditors, the workouts almost never provide enough relief for a “fresh start” of the debtor economy. This often leads to future debt restructurings, and possibly a long period of stagnation or slow economic growth, with consequent worsening of poverty.