ECONOMYNEXT – Sri Lankan magazine Echelon is hosting an online forum with Lee Buchheit, an international specialist who has worked on sovereign debt restructuring in several countries.
The forum will start at 4:30 p.m. on October 05.
Following multiple rating downgrades in a short period of time to CCC + and high premiums, Sri Lanka is now excluded from global markets.
In each of the coming years, Sri Lanka has around $ 4 billion to $ 5 billion in public debt to repay. Over 5 years, there are approximately $ 7 billion of maturing international sovereign bonds that cannot be rolled over from the current haircuts.
As cash injections to impose rate cuts hit Sri Lanka’s currency parity, triggering currency shortages, its foreign exchange reserves were depleted not only to pay off some of the maturing debt, but also to current imports.
Economists have suggested that Sri Lanka should restructure its external debt and seek help from the IMF.
Sri Lanka’s central bank has turned to the IMF for support 16 times since its inception in 1950, after destabilizing the currency’s peg with injections of liquidity.
But neither the country nor the central bank defaulted on their external debt during this period.
This webinar will explore the options available to a sovereign state that chooses to restructure its external debt, how it can approach such a negotiation with its creditors, what to watch out for, and how to make the most of a bad situation.
The speaker, Lee Buchheit is a veteran of sovereign debt restructuring and is considered by many to be a global expert in the field.
He has worked on debt restructuring in soft-rooted countries like Argentina and Venezuela, as well as in Greece, a country in a monetary union that had limited or no capacity to print money from of its own accord, and defaulted on what was effectively an issued national currency debt. in Greek law.
Lee Buchheit retired in 2019 after a 43-year career with Cleary Gottlieb Steen & Hamilton LLP.
His practice has focused on international and corporate transactions, including financial transactions in euros, sovereign debt management, privatization and project finance.
He is the author of two books in the field of international law and over 40 articles on professional issues.