Market resists restructuring reform

Sovereign debt

       
Anne Krueger

Anne Krueger is triumphant. At the IMF’s annual meetings this year, the first deputy managing director saw her pet project – a sovereign debt restructuring mechanism, or SDRM – endorsed by everyone who matters, from the G7 to the Fund’s own international monetary&financial committee (IMFC).

Everyone, that is, except for the two constituencies at which it is squarely aimed: emerging-market borrowers and private-sector lenders.

All the same, it is a stunning achievement for Krueger and the IMF.

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