02387cas a2200337 a 4500 AALejournalIMF022979 230101c9999 xx r poo 0 0eng d 20.00 USD 9798400213250 1018-5941 BD-DhAAL BD-DhAAL Martinez, Leonardo. Sovereign Debt / Leonardo Martinez, Francisco Roch, Francisco Roldan, Jeromin Zettelmeyer. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (46 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 surveys the literature on sovereign debt from the perspective of understanding how sovereign debt differs from privately issue debt, and why sovereign debt is deemed safe in some countries but risky in others. The answers relate to the unique power of the sovereign. One the one hand, a sovereign has the power to tax, making debt relatively safe; on the other, it also has control over its territory and most of its assets, making debt enforcement difficult. The paper discusses debt contracts and the sovereign debt market, sovereign debt restructurings, and the empirical and theoretical literatures on the costs and causes of defaults. It describes the adverse impact of sovereign default risk on the issuing countries and what explains this impact. The survey concludes with a discussion of policy options to reduce sovereign risk, including fiscal frameworks that act as commitment devices, state-contingent debt, and independent and credible monetary policy. Mode of access: Internet Financial Aspects of Economic Integration imf Financial Crises imf International Lending and Debt Problems imf Investment Decisions imf Portfolio Choice imf Roch, Francisco. Roldan, Francisco. Zettelmeyer, Jeromin.. IMF Working Papers; Working Paper ; No. 2022/122 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=122 IMF e-Library