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Sovereign Debt Management


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SOVEREIGN DEBT MANAGEMENT

Course date: 2 May 2022

Fee: $2 000/R32 325 (Hybrid) OR $1 160 (Hybrid)/R18 750 (Online)

Application Closing Date:  19 April 2022

Application Requirements: Application forms: admin@ili-sace.org

Mode of delivery:In-person/Virtual

Introduction

Offered jointly with the University of Pretoria, this programme will discuss the process of establishing and executing a strategy for managing debt and achieve its risk and cost objectives. This programme is taught by one of the world’s leading experts on Sovereign Debt Management, Mr. Lee Buchheit

 

DAY ONE 

The International Capital Markets

  • The lenders
    Multilaterals
    Bilaterals
    Commercial banks
    Bondholders
    Suppliers/ commodity traders
  • The borrowers
    Sovereigns
    “Agencies and instrumentalities”
    State-owned enterprises
    Sub-sovereigns (provinces, cities, etc.)
  • The credit instruments
    Bank loans
    Bilateral loans
    Bonds
  • Sovereign borrowing in the international markets
    Benefits
    Risks
    The refinancing assumption

DAY TWO

Borrowing from Commercial Banks

• Bank loan characteristics
• Syndicated bank lending
• The commercial bank loan agreement
• The loan syndication process
• Role of the administrative agent

DAY THREE

Borrowing from the Bond Market

• The regulatory environment
• Types of bonds (Eurobonds, RegS/144A, private placements, registered
offerings)
• Characteristics of bonds
• The bond issuance process
• The rating agency process

DAY FOUR

Sovereign Debt Restructuring (1982-1999)

  • Global debt crisis of the 1980’s
  • Restructuring techniques
  • The Brady Initiative
  • Sovereign issuers enter the bond markets

DAY FIVE

Sovereign Debt Restructuring (1999-2021)

  • Sovereign bond defaults (1999-2000)
  • Argentine bond default (December 2001)
  • Iraq (2004-2008)
  • Eurozone sovereign debt crisis (2010-2014)
  • Argentina (again); Ecuador (again) (2020)
  • Post-Covid sovereign debt workouts (Ethiopia, Chad, Zambia)

DAY SIX

The Holdout Creditor Problem

  • History
  • Creditor remedies (attachments, pari passu injunctions, public relationscampaigns)
  • Efforts to mitigate the holdout creditor threat
  • Sovereign Debt Restructuring Mechanism (SDRM)
  • Collective action clauses
  • Trust structures
  • Anti-vulture legislation

DAY SEVEN

The Debt Restructuring Process

  • Bilateral debt
  • Paris Club
  • Non-Paris Club bilaterals (China)
  • Coordination with commercial debt workouts
  • Commercial debt
  • Bank loans
  • Bond workouts
  • Supplier credits

DAY EIGHT

The Role of the Official Sector

  • The Bretton Woods background
  • The role of the IMF in sovereign debt workouts
  • Regional development banks
  • Highly Indebted Poor Country (HIPC) initiative
  • Multilateral Debt Initiative (MDRI)
  • Debt Service Suspension Initiative (DSSI) (2020-21)
  • Common Framework

 

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