IMF retreats on sovereign restructuring plans

The International Monetary Fund (IMF) has published a new paper on sovereign debt restructuring that represents a partial retreat from proposals made in May 2013. The multilateral lender had faced criticism after its bail-out of Greece in 2010, when it became clear that the government’s debt burden was not viable even after IMF assistance. Greece restructured its sovereign bonds in 2012, but questions remain about whether the government will be able to repay the volume of debt it now owes to official sector lenders including the IMF.