Comprehensive, Fair and Speedy Resolution of Sovereign Debt Crises through New Law in Capital-market Countries

This article outlines an approach under consideration in the New York State legislature for bringing all restructuring creditors of a debt crisis country together for simultaneous negotiation of comparable relief, in contrast to the current protracted, sequential and non-transparent negotiations. The approach would be strengthened if other capital market jurisdictions adopted similar legislation, which they could prepare together as a ‘model law’. The article also reviews laws and proposals in certain capital-market countries to deter non-cooperating private investors from exploiting existing workout vulnerabilities.