Addressing unsustainable debt situations and the need to take advantage of favourable market conditions to optimally reduce the debt burden are of central importance for many countries.
Examining the options and processes of restructuring debt, 21 participants from debt management offices, central banks and ministries of finance in Asia Pacific and Africa developed their knowledge and skills on our 'Debt Restructuring Techniques' course in July 2006 at our training centre in the UK.
Case studies and practical exercises examined restructuring options including: rescheduling, refinancing, debt buybacks and debt conversions for official, domestic, commercial and private debt. One participant noted the course 'explained concepts and related them to practical situations. A perfect blend of theory and practice'.
On completion participants had enhanced their knowledge and understanding of:
evaluating and negotiating restructuring options
accessing official debt restructuring through the Paris Club, the HIPC Initiative and the Multilateral Debt Relief Initiative (MDRI)
commercial debt restructuring through the London Club
early refinancing initiatives including the Baker and Brady plans
collective action clauses and the effect of restructuring sovereign bonds
developing a refinancing strategy for expensive loans through the capital market
domestic debt restructuring options
The course culminated in group presentations with participants analysing a country's debt statistics and developing a refinancing plan to reduce future debt service costs meeting the borrowing objectives and country strategy.