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Sovereign Debt Risks

23 – 25 May 2022

  • General description

    The goal of this course is to enable an understanding of the risks in sovereign debt; and particularly those risks relating to sovereign default and restructuring.

    The course is structured around the life cycle of a default; with an emphasis on trying to understand the different stages of a crisis and making predictions regarding how the crisis will play out. Participants will get an basic exposure to both the economic and legal considerations involved in the operation of any sovereign debt crisis.

    The course, in addition to exposing participants to the dynamics of a sovereign crisis, will use a case study of either a recent or ongoing crisis to illustrate how restructuring plans get designed.

  • Topics covered

    • The Sources of Sovereign Credit Risk – Law and Economics
    • The Techniques to Deal with Sovereign Crises — Bailouts and Restructurings
    • Case Studies of Two Past Crises and Restructurings: Greece (2012) & Argentina (2001)

    Course modules

    1. How do sovereign borrowers get into trouble?
    2. The warning signs of sovereign distress.
    3. Initial maneuvers to escape and evade the crisis.
    4. The options when the initial maneuvers don’t work — bailout or restructure
    5. The evolution of sovereign debt restructuring techniques — 1982 to 2017
    6. The role of the official sector
    7. Contractual provisions that facilitate, or that retard, sovereign debt workouts
    8. Sovereign debt restructuring after Greece and Argentina
  • Meet the instructors

    Lee Buchheit is Honorary Professor at the University of Edinburgh. Previously, he was a lawyer at a major firm in New York, designing and implementing sovereign debt restructurings for much of the past twenty-five years.

    Mitu Gulati is Professor of Law at Duke University.

    Ugo Panizza (Graduate Institute Geneva)

  • Fees