Lugar: Sala de Reuniones del Departamento de Economía (2ª planta del Edificio Los Madroños). 

Ponente:  Aitor Erce (UPNA-Dpto. Economía & INARBE)

Título: "Domestic-Law Sovereign Debt Restructuring" (trabajo conjunto con Enrico Mallucci y Mattia Picarelli)

Abstract: 

«We introduce a novel database on sovereign defaults and debt restructurings that involve public debt instruments governed by domestic law. By systematically reviewing a large number of sources, we identify 134 default and restructuring events of domestic debt instruments, in 52 countries from 1980 to 2018. Domestic-law defaults are a global phenomenon. Over time, they have become larger and more frequent than external debt defaults. Domestic-law debt restructurings proceed faster than foreign ones, often through extensions of maturities and amendments to the coupon structure. While face value reductions are rare, net-present-value losses for creditors are larger than during external defaults. Unilateral amendments and post-default restructurings are the norm, but negotiated pre-default restructurings are becoming increasingly frequent. Domestic-law debt restructurings typically involve debt denominated in local currency and held by resident investors. These new stylized facts inform a growing theoretical literature concerned with sovereign default in the presence of domestic public debt markets.»