We plan to investigate the relationship between sovereign debt default and a series of economic and political indicators (such as annual GDP growth, credit ratings, capital control and political stability) by taking into account the depth of a debt restructuring and distinguishing between commercial and official deals as well as between debt flow and stock reduction. Our specific contribution is then to contrast the outcomes of debt restructuring between official and private debt restructurings as well as between debt flow and stock reduction. In fact, despite the role that official creditors have historically played in the resolution of sovereign debt crises, little is still known on the implications of debt restructurings involving official creditors. In particular, if defaulting on private or official debt is not found to be the same, this circumstance could be particularly instructive, for example, in the case of Greece, where private debt has been replaced by official debt.

Research team:

Principal: Silvia Marchesi: https://sites.google.com/site/ssilviamarchesi/home

Tania Masi : https://sites.google.com/view/taniamasi