Gallagher co-authored commentary on Argentina’s debt relief

Kevin Gallagher, Professor of Global Development Policy and Director of the Center for Global Development Policy at the Frederick S. Pardee School for Global Studys at Boston University, co-authored a recent commentary in Project union on the restructuring of Argentina’s private debt.

Posted on May 6, 2020, the commentary deals with a proposal to Argentinian creditors that would create a more sustainable income stream. As stated in the article, “responsible resolution will set a positive precedent, not only for Argentina, but for the international financial system as a whole”.

An extract:

Argentina has presented its private creditors with a responsible offer that adequately reflects the country’s ability to pay: a three-year grace period with a minor reduction in principal and a significant reduction in interest. The proposal is in line with IMF technical analysis, which indicates that substantial debt relief for Argentina’s private creditors will be required to restore debt sustainability with a high probability.

Argentina’s proposal also provides the international financial community with an opportunity to show that it can resolve a sovereign debt crisis in an orderly, efficient and sustainable manner. The absence of an international legal framework for sovereign debt restructuring should not deprive indebted countries of the opportunity to protect their populations and ensure economic recovery during the greatest global crisis in our memory.

Read the full piece here.

Kevin gallagher is Professor of Global Development Policy at the Frederick S. Pardee School of Global Studies at Boston University, where he directs the Global Development Policy Center. He is the author or co-author of six books, the most recent of which, The Chinese Triangle: China’s Boom in Latin America and the Fate of the Washington Consensus. Learn more about him here.

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