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Date and Location
Walid Haida
When countries go bankrupt, they are expected to (and usually do) continue servicing their debts to large multilateral institutions like the IMF and World Bank. Yet although this "preferred creditor status" (PCS) is an established aspect of the international financial system, the criteria for extending PCS to certain creditors remains ambiguous and contested. In particular, the protected status of regional entities—like the African Export-Import Bank— that provide financing to developing countries has recently come into question. This uncertainty undermines the efficiency and equity of the sovereign debt restructuring process and potentially impedes access to critical funds for vulnerable countries.
This study group will take stock of current debates surrounding preferential treatment of official bilateral and multilateral creditors and will discuss the appropriate goals and design of a modern PCS regime, as well as the sovereign financial architecture more broadly.
Presenters:
Research Fellow, M-RCBG, HKS
Managing Director and Global Head of Sovereign Advisory, Alvarez & Marsal
Ali Hakim
Senior Associate, Alvarez & Marsal