IMF launches broad review on sovereign debt restructurings

The International Monetary Fund has begun to rethink how it should handle bailouts for countries that run into financial trouble, with staff suggesting private-sector creditors should regularly be required to bear some of the load.

The proposal is part of a major review the IMF has launched of its policies relating to sovereign debt restructurings that is expected to take up to a year.

It conducted its last review in 2005, but decided a fresh look was needed in light of a number of recent sovereign debt restructurings, including one by Greece, which was the largest ever.

via Business feed http://www.scmp.com/business/economy/article/1244958/imf-launches-broad-review-sovereign-debt-restructurings