By Aitor Erce, Enrico Mallucci, Mattia Picarelli
The debt jurisdiction affects a government’s ability to restructure its debt, is key to shaping the restructuring process, and affects the timing and conditions of market access. This column introduces a new database that codes sovereign defaults according to the legal jurisdiction governing the debt instruments. The database offers an overview of the last four decades of sovereign default on debt governed domestically. These data can be useful both for theorists in the need to calibrate their quantitative models and for policymakers facing the consequences of the pandemic.
Link: Sovereign defaults in domestic law debt: Stylised facts from a new database