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 …

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 … arrears) and creditor losses in debt restructuring (haircuts). We overturn conventional wisdom by showing that official …

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

revenues, which also improves fiscal sustainability. Specifically, rationalising public expenditures without jeopardising the …

I analyze how lack of commitment affects the maturity structure of sovereign debt. Governments balance benefits of …-term debt affects default and rollover decisions by subsequent policy makers. The equilibrium maturity structure is shaped by … revenue losses on inframarginal units of debt that reflect the price impact of these decisions. The model predicts an interior …

We offer a new methodology for the assessment of public debt sustainability in a stochastic economy when sovereign … default taken into account. The default threshold differs from the no-Ponzi condition and depends on the post-default debt … sequence of shocks. We highlight the role of the debt recovery ratio on the whole dynamics of public debt. When a sovereign …