CAPITAL MARKETS AND EMERGING MARKETS POLICY

Debt Restructuring

Meeting of the Paris Club with Representatives of Non Paris Club Bilateral Creditors and Representatives of the Private Sector

June 25, 2014 — For the 14th consecutive year, the Paris Club and the Institute of International Finance jointly organized a meeting between Paris Club creditors, Paris Club ad hoc participants and private creditors, along with representatives from the International Monetary Fund and the World Bank.

Sovereign and private participants stressed the paramount importance of dialogue between sovereign debtors and their creditors and coordination among creditors as the cornerstone of an efficient system for sovereign debt crisis prevention and resolution.

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IIF Special Committee on Financial Crisis Prevention and Resolution

Views on the Way Forward for Strengthening the Framework for Sovereign Debt Restructuring

This note highlights the Special Committee’s views on the way forward for strengthening further the sovereign debt restructuring framework, including the Committee’s reactions to the International Capital Markets Association’s (ICMA) draft new guidelines for aggregation clauses and to the IMF staff’s key points and suggestions included in the April 2013 IMF Staff Report on possible changes to the IMF policy and legal framework for sovereign debt restructuring that could be considered. The Special Committee comprises 43 senior officials from major IIF-member financial institutions that represent the private creditor and investor community. This note summarizes the views of the Special Committee expressed in a number of forums. The note is intended to contribute constructively to the ongoing discussions on possible refinements to the existing contractual, market-based approach to sovereign debt restructuring.

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Meeting of the Paris Club with Representatives of Non Paris Club Bilateral Creditors and Representatives of the Private Sector

October 22, 2013 — The Paris Club and the Institute of International Finance jointly organized for the 13th consecutive year a meeting between Paris Club creditors, representatives of Paris Club associated members and of private creditors. IMF and World Bank representatives also attended the meeting. Official creditors and private sector representatives discussed several current global finance issues: the changing landscape of capital flows in low income countries and the potential associated challenges; the most recent restructuring activities of the Paris Club; a forward-looking vision of the group of creditors, including its pivotal role in the changing landscape of global finance; the existing framework for sovereign debt crisis prevention and resolution; and the key features of recent sovereign debt restructurings.

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2012 Meeting of the Private Sector with the Paris Club and with Representatives of Non Paris Club Bilateral Creditors

September 11, 2012 — On Tuesday 11 September 2012, the Paris Club and the Institute of International Finance jointly organized for the 12th consecutive year a meeting between Paris Club creditors, representatives of non-Paris Club bilateral creditors and of private creditors. The IMF and the World Bank also attended this meeting. Discussions focuses primarily on five topics: (i) a briefing on the global economic and financial outlook for emerging markets and low-income countries, including a presentation the case of Brazil as an example of an emerging market becoming a growing source of FDI flows for other emerging markets; (ii) a briefing on recent debt restructuring activities with significant private sector and Paris Club involvement, including St. Kitts & Nevis and Côte d’Ivoire – there was also an opportunity to brief and receive comments from the Paris Club on private creditor relations with Argentina; (iii) a brief presentation on valuation methodologies for contingent liabilities; (iv) a presentation by the IMF staff on the Fund’s framework to assess public debt sustainability in market-access countries; and (v) a discussion with the Paris Club on the search for a strengthened framework for sovereign debt crisis prevention and resolution, in the context of the implementation of the Principles for Stable Capital Flows and Fair Debt Restructuring.

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Meeting of the Paris Club with Representatives of Non Paris Club Bilateral Creditors and Representatives of the Private Sector

June 17, 2011 — On Friday 17 June 2011, the Paris Club and the Institute of International Finance jointly organized for the 11th consecutive year a meeting between Paris Club creditors, representatives of non-Paris Club bilateral creditors and of private creditors. The IMF and the World Bank also attended this meeting.

Creditors discussed several issues of common interest, including recent restructuring activities of the Paris Club, recent developments in Sudan and Cote d’Ivoire and specific debt issues in Iceland and Argentina. A discussion on the economic consequences of the political transition in the Middle East and North Africa took place. Finally, creditors also discussed the introduction of standardized collective action clauses in European sovereign bond indentures and shared views on their main features.

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Strengthening Approaches to Risk Appetite and Risk IT Should Be Key Risk Management Priorities for Global Financial Services Firms, says IIF

June 17, 2011 — Global financial services firms should assign priority to strengthening their approaches to Risk Appetite and upgrading their Risk Information Technology operations as part of their efforts to improve risk management and risk governance, stated the Institute of International Finance.

Mr. Klaus-Peter Müller, Co-Chairman of the IIF Steering Committee on Implementation (SCI), Chairman of the Supervisory Board of Commerzbank AG, stated, “Financial services firms and their supervisors have been paying increasing attention to risk appetite, which is about defining clearly in advance the amount and type of risk that a company is able and willing to accept in pursuit of its business objectives, and then operating within this boundary.”

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2010 Annual Meeting Between Paris Club Creditors and the Private Sector

June 16, 2010 — The Paris Club and the Institute of International Finance jointly organized for the 10th consecutive year the annual meeting between Paris Club creditors, representatives of non-Paris Club bilateral creditors and of private creditors. The IMF and the World Bank also attended this meeting.

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2007 Annual Meeting between Paris Club Creditors and Private Sector

May 23, 2007 — The meeting between representatives from the private sector and the Paris Club provided an opportunity for an open discussion on various issues of common interest. The discussions centered on private sector restructuring cases in Heavily Indebted Poor Countries (HIPC), new lending and debt sustainability issues in low-income countries, the implementation of the Principles for Emerging Markets, as well as recent activities by the Paris Club. The meeting also enabled participants to get a better understanding of each others views on various country cases, including Argentina, Belize, and Nicaragua. The meeting was co-chaired by Paris Club Chairman Xavier Musca, Jacques de Larosière, Advisor to the Chairman of BNP Paribas Group, and Robert Gray, Chairman of Debt Financing and Advisory at HSBC Bank, Plc. and was attended by all Paris Club creditors.


2006 Annual Meeting between Paris Club Creditors and Private Sector

June 14, 2006 — The meeting on June 14, 2006 between representatives from the private sector and the Paris Club provided an opportunity for a frank and open discussion on various country cases.

These discussions were framed in the context of recent Paris Club agreements and/or private restructuring deals for these countries. The discussions centered on the Paris Club's comparable treatment principle, the guidelines of the Principles for Emerging Markets, as well as the IMF's lending into arrears policy, which Fund management has proposed to review.

Private sector participants also provided their views regarding prospects for emerging market debt, including new markets and investors. The meeting was chaired by Paris Club Chairman Xavier Musca and attended by all Paris Club creditors.


Successful Meeting between Paris Club Creditors and Private Sector

June 15, 2005 — The meeting on June 15, 2005 between representatives from the private sector and the Paris Club provided an opportunity for private sector participants to brief official creditors on the Principles for Stable Capital Flows and Fair Debt Restructuring in Emerging Markets and to exchange views on how these Principles would impact Paris Club operations going forward. Following last year's model, the meeting focused primarily on country cases with the discussion on each country framed on the basis of adherence to the Principles. The meeting was chaired by Paris Club Chairman Jean-Pierre Jouyet and attended by all Paris Club creditors.


Letter from Private Sector Industry Groups to IMF Board, IMFC and G-7 Officials on Argentina

In a letter from six private sector industry groups to all IMF Directors as well as members of the IMFC and G-7 Ministers and Governors, we argue strongly against any conclusion of the Fund's second review of the Argentinean program in current circumstances. In particular, the letter sets forth a clear case, we believe, that the Fund's own "good faith" test has not been met.


Letter from Charles Dallara to IMF Managing Director Horst Köhler on Argentina

IIF Managing Director Charles Dallara sent a letter to Horst Köhler, Managing Director of the IMF, that conveys concerns regarding Argentina's economic program and IMF support of that program, as well as the debt restructuring proposal put forward by the Argentine authorities. The letter was sent on behalf of the IIF's Board of Directors.