The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

SDRM is dead, and that's official

After Mexico came to market successfully with its collective action clauses (CACs), most observers reckoned that the IMF's plans for a sovereign debt restructuring mechanism (SDRM) would not be taken any further. The US Treasury in general, and undersecretary for international affairs John Taylor specifically, was known to be a zealous proponent of CACs, and now that the market had managed to adopt them there was no reason to threaten it with SDRM.

But what happened at the spring meetings of the IMF in Washington came as a surprise even to the most optimistic private-sector lobbyists. Most of them expected the US, as the IMF's largest shareholder, to make vague noises about how SDRM might be a good idea in theory, and send it off to get studied by endless committees with the clear understanding that it would never actually be implemented. "We had thought that they were going to follow a policy of benign neglect," says Georgetown University Law Center professor Mitu Gulati.

In fact, US Treasury secretary John Snow was much more blunt than anyone had expected.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree