In August, the IMF published data on sovereign debt restructuring cases between 1950 and 2010, detailing pitfalls in the process including creditor holdouts and litigation, communication amongst stakeholders and the scope of debt relief in past restructurings. An August report by Canadian think tank Centre for International Governance Innovation (CIGI) highlights “pressing questions” in the way that international global institutions limit debt costs. The report, Sovereign debtors in distress: Are institutions up to the challenge?, finds that debt restructuring negotiations were not an “unmitigated success.” It recommends developing a legal framework for restructuring, examination of the template for collective action clauses and further scrutiny of whether the IMF is “optimally organised for crisis management”.
World Bank & IMF in the news
EarthRights International examines how the Jam v. IFC case has helped to shift the landscape of accountability for international financial institutions by successfully challenging their claim to “absolute” immunity in US courts, potentially opening IFC up to further legal challenges in future.