State-contingent debt instruments gain traction in restructurings as sovereign defaults rise

Moody's Talks - Emerging Markets Decoded

English - February 20, 2024 11:52 - 14 minutes - 13.8 MB
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These instruments provide flexibility on debt-service payments and can help bridge differences in restructuring talks. Protracted talks delay critical structural reforms and increase default risk.

Guest: David Rogovic, Vice President – Senior Credit Officer, Sovereign Risk Group, Moody’s Investors Service

Host: Scott Phillips, Associate Managing Director, Emerging Markets, Moody’s Investors Service

Related Research:

State-contingent debt instruments can aid debt restructuring, but can carry fiscal risks