This paper compares different instruments for a debt relief, given severe debt servicing problems of some sovereign debtors. Criteria for a debt relief are discussed. First, it will be argued that a debt relief cannot be supported by the argument that it benefits both, the debtor and the...

The European Community has passed the European Insider Directive which prohibits insider trade in common stock and debt securities. Hence banks are not allowed to sell debt securities when they receive unfavorable inside information on their borrowers. Until now, German banks have not only been...