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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