02083cas a2200277 a 4500 AALejournalIMF016985 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498382236 1018-5941 BD-DhAAL BD-DhAAL Forni, Lorenzo. Sovereign Debt Restructuring and Growth / Lorenzo Forni, Geremia Palomba, Joana Pereira, Christine Richmond. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (42 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper studies the effect of sovereign debt restructurings with external private creditors on growth during the period 1970-2010. We find that there are bad and good (or not so bad) debt restructurings for growth. While growth generally declines in the aftermath of a sovereign debt restructuring, agreements that allow countries to exit a default spell (final restructurings) are associated with improving growth. The impact can be significant. In general, three years after restructuring, growth is about 5 percent lower compared to countries that did not face restructuring over the same period. The exception is for final restructurings, which result in positive growth in the years immediately after the restructuring. Final restructurings tend to be better for growth because they reduce countries' debt, with the strongest effect for countries that exit restructurings with relatively low debt levels. Mode of access: Internet Palomba, Geremia. Pereira, Joana. Richmond, Christine. IMF Working Papers; Working Paper ; No. 2016/147 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/147/001.2016.issue-147-en.xml IMF e-Library