Essay series | Sri Lanka: from debt default to transformative growth - Lessons from bondholder restructurings

Overseas Development Institute

These ‘hard’ defaults tend to restructuring are the speed of restructuring reflect breakdowns in relations and an adoption and the scale of debt relief obtained. [...] The use of CACs, the case of Ecuador was critical to a smooth and particularly of enhanced ‘two-limb’ CACs, and non-confrontational restructuring contributed to the relative speed of Argentina process. [...] 1.3 Debt restructuring instruments: In our cases, the largest haircuts, of above 35%, legal tools and tactics are associated with an external debt surge in the five years before default or start of A key concern for governments in debt restructuring, with external debt as a proportion restructuring is that some bondholders will of gross national income (GNI) (or debt to GDP refuse to participate,. [...] to maximise debt relief for the size of haircut possible, frontloading fiscal adjustment following While the case for debt swaps is narrow, they may a restructuring and ensuring that the repayment be part of a menu of tools for long-term growth profile of restructured bonds matches future and conservation goals. [...] Government of Zambia (2024) ‘Government of the Republic of Zambia reaches agreement in principle on debt restructuring terms with the Steering Committee of the Ad Hoc Creditor Committee of holders of Zambia’s Eurobonds’.