Author/Editor:

International Monetary Fund. Legal Dept. ; International Monetary Fund. Strategy, Policy, & Review Department ; International Monetary Fund. Monetary and Capital Markets Department

Publication Date:

March 16, 2021

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

The note concludes that the Fund could support a member’s use of buybacks, cash sweeteners, or collateral in the context of a Fund-supported program, provided that (i) debt restructurings using buybacks, cash sweeteners or collateral offer significant efficiency gains relative to debt restructurings that do not rely on such instruments, but are underpinned by a regular Fund-supported program; and (ii) an adequate cushion of non-multilateral debt remains after the operation. The conditions under which buybacks, cash sweeteners or collateral can be expected to deliver significant efficiency gains are narrow and specified in some detail.

Series:

Policy Paper No. 2021/018

Frequency:

occasional