Fernández, Katherina; Fernández, Roque B. - In: Journal of Applied Economics X (2007) May, pp. 43-76
This paper uses a contract theory model to argue that covenants ruling debt renegotiations are important to assure the sovereign willingness to pay. The model includes the following features: first, collective action clauses, exit consents, aggregation provisions and pari passu clauses play an...