Seminar
This presentation is the property of its rightful owner.
Sponsored Links
1 / 14

Wreck of Medusa PowerPoint PPT Presentation


  • 113 Views
  • Uploaded on
  • Presentation posted in: General

Download Presentation

Wreck of Medusa

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Wreck of medusa

SeminarSOVEREIGN STATE INSOLVENCYNovember 2008by Philip R WoodSpecial Global Counsel, Allen & Overy LLPVisiting Professor in International Financial Law, University of OxfordYorke Distinguished Visiting Fellow, University of CambridgeVisiting Professor, Queen Mary College, University of LondonVisiting Professor, London School of Economics & Political Science


Wreck of medusa

Wreck of Medusa


What is state insolvency

What is state insolvency?

Historical background

  • Early history: wars, kings and more wars

  • The 19th century serial disasters

  • The 20th century: three disasters

  • The 21st century - the big one

  • Who's next?


Wreck of medusa

53. Map: State insolvency 1980-2005


Wreck of medusa

56. Map: Bank insolvencies 1980-2002


Comparison with corporate bankruptcies 1

Comparison with corporate bankruptcies (1)

  • Realisation

  • Management

  • Freeze on creditor actions

  • Dissenting creditors

  • Disclosure


Comparison with corporate bankruptcies 2

Comparison with corporate bankruptcies (2)

  • Preferences

  • Security

  • Priorities

  • Discharge


Comparison with corporate bankruptcies 3

Comparison with corporate bankruptcies (3)

  • Delinquencies

  • Currency

  • Interest

  • Set-off

  • Debt/equity conversions


Protections to insolvent states

Protections to insolvent states

  • Local assets inviolable

  • Monetary sovereignty

  • Legislative sovereignty

  • IMF Agreement art VIII, s 2(b)

  • Sovereign immunity

  • Insulation of state entities


Rescheduling ladder of priorities

Rescheduling ladder of priorities

  • Supra-national creditors/trade debt/interbank debt./ small creditors

  • Government debt/public bond issues/commercial banks

  • Non-accepting creditors


Architecture

Architecture

  • IMF

  • Paris Club

  • London Club

  • Bondholder committees


Rescheduling practice key points

Rescheduling practice: key points

  • Banks (reschedule or exchange)

  • Bonds (exchange)

  • Central bank

  • Rescheduled debt: short-leash

  • Debt reconciliation

  • Most favoured debt clause

  • Collective action clauses

  • Exit consents (Ecuador 1999)


Finally

Finally

IMF sovereign debt restructuring mechanism

Conclusions


Venus in shell

Venus in shell


  • Login