Argentina’s deal with the holdouts is a mixed blessing (Mario Blejer)

0be943c9-d94f-46e8-a752-4d76a62586be“In the absence of a multilateral framework, what is convenient for an individual country could have negative consequences for the international system as a whole. […] Standard bankruptcy procedures treat creditors equitably, minimising economic damage by resolving things fast. In this case, inequality among creditors caused maximum economic harm. It underlines the need for a sovereign debt restructuring mechanism.”

Read Mario Blejer’s full article at http://on.ft.com/1M3GwWE

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