Bankruptcy regime for nations urged

Argentina's messy legal battle with hedge funds over its 2001 sovereign default has heightened calls to resurrect plans for a bankruptcy regime for countries, under the auspices of the International Monetary Fund.

Many senior lawyers, fund managers and former policy makers say recent court rulings against Argentina highlight the weaknesses of the current approach to government debt workouts, and argue that it is time to revisit the "sovereign debt restructuring mechanism" proposed by the IMF in 2002 ... READ MORE

Released by the Financial Times - 6 January 2013