The Actors in Sovereign Debt Restructurings

This chapter surveys some of the actors in sovereign debt restructurings. Millhouse’s quote above underscores the number and diversity of players in municipal insolvencies. Nevertheless, the number and heterogeneity of the actors involved in municipal and corporate bankruptcies pale in comparison with the typical sovereign debt restructuring. The still greater number and more colorful cast of players is involved in sovereign debt restructuring increases the complexity of sovereign debt restructurings. We can group the actors in sovereign debt restructurings into three main categories 1. creditors, including creditor associations;2. debtors, including their instrumentalities and financial and legal advisors; and3. third parties (e.g., the IMF). There is a degree of overlap between these categories. For example, many countries are both debtors and creditors; and the IMF may be both a creditor and a third party