This paper focuses on the debt recovery channel linking the dynamics of public debt to partial sovereign defaults. We … build a simple model which incorporates sovereign default and a debt recovery rule. It depends on a parameter that allows … for partial debt recovery. We show that the maximum debt-to-GDP ratio that a country can sustain without defaulting is …

arrears) and creditor losses in debt restructuring (haircuts). We overturn conventional wisdom by showing that official …Sovereign governments owe debt to many foreign creditors and can choose which creditors to favor when making payments …. This paper documents the de facto seniority structure of sovereign debt using new data on defaults (missed payments or …

, current account balance and public debt, as a percentage of GDP, and the temporal period (before and after 2010) also …

legal rules were viewed to impose strict limitations on debt restructuring involving public creditors due to moral hazard … applicable legal standard capturing the impact of debt restructuring on the debtor's expected compliance with fiscal rules. Our …The controversy about sovereign debt cuts loomed prominently throughout crisis in the European Union (EU), as the EU …

conclude for the existence of panel cointegration between government revenues and expenditures; primary government balance and … one-period lagged public debt-to-GDP ratio; and public debt-to-GDP ratio and one-period lagged primary government balance …

primary balance above or below the debt-stabilizing primary balance (provided by the IMF’s Debt Sustainability Analysis) for …

and debt. We combine the reduced-form model of the economy from a linear VAR with a non-linear welfare function and obtain …

sustainability if long-term interest rates rise. Bringing back public debt to 60% of GDP even by 2030 would require a fiscal effort … upswings. This has resulted in a quadrupling of its public debt-to-GDP ratio since the 1970s to above 80% of GDP. Reducing … public debt is crucial because a high level of public debt may hamper long-term growth and may have a direct impact on fiscal …