02429cas a2200277 a 4500 AALejournalIMF022211 230101c9999 xx r poo 0 0eng d 5.00 USD 9781616358112 2663-3493 BD-DhAAL BD-DhAAL International Monetary Fund. Issues in Restructuring of Sovereign Domestic Debt. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (99 pages) Policy 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 As emerging and developing economies accumulate more domestic sovereign debt, it is likely to play a larger role in the resolution of future sovereign debt crises. This paper analyzes when and how to restructure sovereign domestic debt in unsustainable debt cases while minimizing economic and financial disruptions. Key to determining whether or not domestic debt should be part of a sovereign restructuring is weighing the benefits of the lower debt burden against the fiscal and broader economic costs of achieving that debt relief. The fiscal costs may have to be incurred in the context of restructuring because of the need to maintain financial stability, to ensure the functioning of the central bank, or to replenish pension savings. A sovereign domestic debt restructuring should be designed to anticipate, minimize, and manage its impact on the domestic economy and financial system. Casting the net wide across claims can help boost participation in the restructuring by lowering the relief sought from each creditor group. A strategy that engages creditors constructively, and as transparently as possible, that relies on market-based incentives, and that presents the exchange as part of a consistent macroeconomic plan typically works best. Mode of access: Internet Domestic Debt, Sovereign Debt Restructuring and Sovereign Default imf Monetary Policy imf Political Economy imf Policy Papers; Policy Paper ; No. 2021/071 Full text available on IMF http://elibrary.imf.org/view/journals/007/2021/071/007.2021.issue-071-en.xml IMF e-Library