Links for Greek debt crisis (updated)
Posted: September 24, 2011 Filed under: Themed links | Tags: Anne Sebert, EU, Greece, Greek debt, IMF, Lee Buchheit, Pari passu, Restructuring, Sovereign debt, Willem Buiter
The following links may be useful in keeping track of developments and understanding issues arising.
- An essential resource is the financial information portal, capital.gr, a daily online newswire service available in both Greek and English.
- Also well worth following is the Greek and English language blog created by Aristides Hatzis of Athens University, Greekcrisis.net.
- The FT’s Alphaville blog is also a vital source of information.
- For anyone exploring legal aspects of the crisis and the issue of sovereign default the writings of American lawyer Lee Buchheit of New York law firm Cleary Gottleib on aspects of the issue in general and also specifically the Greek case are absolute must-reads. These include
Drafting a Model Collective Action Clause for Eurozone Sovereign Bonds (with G Mitu Gulati);
Greek Debt – The Endgame Scenarios (with G Mitu Gulati);
How to restructure Greek Debt (with G Mitu Gulati);
Sovereign Bonds and the Collective Will (with G Mitu Gulati);
The Pari Pasu Covenant in Sovereign Debt Instruments (with Jeremiah Pam); and
The Dilema of Odious Debt ( with G Mitu Gulati and Robert B Thompson).
The July 21 second bailout agreed by eurozone leaders worth €109 billion ($155 billion) included the use of voluntary private-sector involvement (PSI) in a debt swap that would extend maturities on existing debt. Banks and other private investors are expected to contribute €135 billion to the bailout. The Greek government gave bondholders until September 9 to say whether they intended to take up its debt exchange offer which foresees an average 21 percent haircut on portfolios. It also indicated on 26 August that it might not proceed with the swap if it did not get at least a 90 percent uptake: a development revealed by Reuters in a good old-fashioned scoop. The 9th of September has of course come and long gone with no news on uptake – but plenty of reporting of slowness of joining in the scheme.
In addition to the writings of Buchheit (with others) also of relevance in this general area are perhaps
A New Approach to Sovereign Debt Restructuring (Anna O Kreuger, IMF, April 2001);
The Design of the Sovereign Debt Restructuring Mechanism – Further Considerations (IMF);
The Political Economy of the SDRM (Brad Setser);
The above three papers chart the story of a failed project. Also of interest,
How to resolve sovereign debt crises in the 21st century (Barry Herman, June 2011)
Pari passu and a distressed sovereign’s rational choices (William W Bratton);
The problem of sovereign debt restructuring: How can we deal with the Holdout problem legally? (Kento Tamura);
Sovereign Debt Restructuring: Should we be worried about Elliot? (Eduardo Sandoval); and
To Rank Pari Passu or not to Rank Pari Passu: That is the question in sovereign bonds after the latest episode of the Argentine Saga (Rodrigo Olivares-Caminal, 2008).
More in the economics sphere than in the legal are also,
The Economic Consequences of Greece (Arnaud Mares of Morgan Stanley in the Sovereign Subjects series, August 2011);
Debt Restructuring: Ramifications for the Euro Area (Anne Sibert, briefing note for European Parliament, June 2011);
The future of the euro area: fiscal union, break-up or blundering towards a ‘you break it you own it Europe’ (Willem Buiter and Ebrahim Rahbari, 9 September 2011, Citigroup Global Markets)