Public Debt Market – Public Debt Market: - To lend to a King has been always a risky business - How is it possible a public debt market if - There is no mechanism to avoid a sovereign default - It is very difficult to cash 100% Nominal Value after a default - It is not easy to restructure debt and regularize payments
- Most striking is: why sovereign borrowers delay a default even when the situation does look totally unsustainable?
| Itaú BBA | Argentina´s Economic Experience: Lessons for Europe´s Periphery | November 2012