Daniel Reichert-Facilides retweetledi
Very timely and thought-provoking analysis. High expectations for further elaboration in subsequent work @federica_paddeu @WaibelM09 (3/3)☟
ejiltalk.org/offsetting-deb…
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Daniel Reichert-Facilides
278 posts
Daniel Reichert-Facilides
@DFacilides
NY & Hamburg Bar • #SovereignDebt Reform, Energy & Infrastructure Finance
Katılım Şubat 2021
218 Takip Edilen238 Takipçiler
Daniel Reichert-Facilides retweetledi
🚨 New Blog! 🚨 @DFacilides examines key shifts in the FfD4 Outcome Document's paragraph 50 on sovereign debt. Discover what it means for global finance. Read more via link in comments👇 #FfD4 #DevelopmentFinance #Legislation #Finance
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@BiltoftCN @flandreaumarc Gottlob, durch meine Fenster bricht / Französisch helles Tageslicht ;-)
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@ClaudiaPotsdam @Ricarda_Lang Hmm - wieso Perspektive? Und welche (oder wessen) Vernunft?
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@Ricarda_Lang Es ist eine Frage der Perspektive.
Mir scheint, es lassen sich alle treiben.
Hoffentlich stellt sich möglichst bald die Vernunft ein. Trotz Wahlkampf.
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Friedrich Merz ist ab heute ein Getriebener der AfD.
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@Otto_Fricke @TillMansmann Zw 1949 und 1960 lag der Anteil öff Investitionen in der BRDtl insges auch schon mal bei 30%. Transformationsprozesse, so wie damals der Wiederaufbau und heute die Umstellung von Energie-, Verkehrs- und TK-Infrastruktur, gehen halt typischerweise mit höherem Staatsanteil einher.
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Investitionen: Ich hab es ja mehr mit Fakten. Wenn der Bund (trotz Rekord) für NUR gut 4% der Investitionen verantwortlich ist, kann man leicht erkennen, warum der private Sektor entscheidend ist und bleiben wird #Schuldenbremse
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@michaelxpettis @FT By now, the disagreement is not so much on the debt brake (which most people accept as flawed) but on how much social benefits the Germany on can/should afford.
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This isn't something I would have expected from anyone in the German policymaking elite.
ft.com/content/702d21… via @ft
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@PhilippaSigl @pkrohn1 @DezernatZ Vielen Dank für‘s Kommen - jetzt sind wir nochmal mehr gespannt, ob und wie sich die Schuldenbremse aus den Fängen der Juristerei wird befreien können ;-)
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Compelling case for enhanced use of domestic currency debt by emerging market borrowers 👇
#3. could be further expanded to using domestic currency debt as a simplified form of VRIs in sov debt restructurings. That wld also address concerns expressed in imf.org/-/media/Files/… x.com/kpatricio_/sta…
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@RikeFranke A (very) benign explanation would be that this is part of a coordinated EU good cop/bad cop strategy.
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Daniel Reichert-Facilides retweetledi
Heading into New York's 2025 legislative session, it's a good time to review what we learned during the 2023 and 2024 sessions about sovereign debt reforms at the state level.
@HarvardBizGov
hks.harvard.edu/centers/mrcbg/…
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Well, it’s always been a legal right, just subject to a higher threshold.
But NY lawmakers should indeed take note: If they want to proceed, they should follow the lead of the UK Debt (Dev Cts) Relief Act, which essentially enforced CoT & applies irrespective of governing law.
Gregory Makoff@GMakoff
New York lawmakers should pay attention to this. Shifting jurisdiction is more than a threat now, it’s becoming a legal right.
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Not surprising, given the twists and turns of NY sovereign debt bills. Shows that any such legislation must apply irrespective of governing contract law as a matter of public policy to have a real impact.
dx.doi.org/10.2139/ssrn.4…
Kevin Carey@Kevin_Carey_WB
Sri Lanka Eurobond restructuring update: "A mechanism to change the governing law of the New York law governed new securities to English or Delaware law with the consent of a supermajority of bondholders ..."
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Favorite quote from a new favorite episode of C&C:
‚Having creditors being able to move first and remove [the] sequential aspect that's been plaguing the sovereign debt restructuring process is another argument that we need some more clarity on the comparability assessment.‘
Theo Maret@TheoMaret
Had loads of fun geeking out with Mitu and Mark on Zambia and comparability of treatment -- bit of a fanboy moment joining Clauses & Controversies as a long-time listener podcasts.apple.com/fr/podcast/ep-…
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If VRIs are here to stay, the most simple and market-friendly arrangement would be to convert part of the old foreign debt to local currency (possibly still under NY/English law to improve liquidity) and allocate it pro rata to ensure CoT. That should tick all the boxes.4/4
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Also, the proposal doesn’t seem to address the core issues identified by @Brad_Setser @RivettiDiego et al.: how to define the trigger, how to calibrate the extra free cash and how to address asymmetry if benchmark data deteriorate vs DSA assumptions. 3/4
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In a nutshell, Lee & @GMakoff propose value recovery through mandatory prepayment of restructured debt in inverse order of maturities.
As VRI becomes the new normal, this looks like a win-win bc prepayment reduces creditors’ exposure while freeing up fiscal space.
Yet… 🧵1/4
Gregory Makoff@GMakoff
Sovereign debtors, creditors, and IMF staffers: Are you getting tired of overly complicated value recovery mechanisms? Lee Buchheit and I propose a simpler—and more beneficial—alternative to use next time. Just up on SSRN. @HarvardBizGov @CIGIonline papers.ssrn.com/sol3/papers.cf…
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Parallel negotiations with different creditor groups now look like a realistic idea to improve the sovereign debt restructuring process. Here’s how a set of rules for the #CoordinatedFramework proposed by Sean Hagan and @Brad_Setser might read. 🙏🙏@RobinWigg and @FTAlphaville
FT Alphaville@FTAlphaville
Putting some flesh on the Hagan-Setser sovereign debt proposal on.ft.com/3y9dDa7
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Daniel Reichert-Facilides retweetledi
Flandreau Schule & Friends had great fun last week workshopping « States of Distress » at @SAFE_Frankfurt @KPatricio_ @ecovibi @a_capitalism @damianclavel @KimOosterlinck @DFacilides ❤️❤️❤️❤️ Thanks to
all of you
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@lutzmache @PhilippaSigl Deformation professionelle - trotzdem finde ich, dass er hier in der Sache Recht hat: die Schuldenbremse war ein Fehler, den diejenigen korrigieren sollten, denen wir das gegenwärtige Schlamassel verdanken.
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