Martín Guzmán Says More…
Project Syndicate interviews Argentina's Economy Minister, Martin Guzmán. A preview below.
Project Syndicate: Argentina’s successful sovereign-debt restructuring amid the COVID-19 crisis was a remarkable achievement. In your forthcoming commentary for Project Syndicate’s annual Year Ahead magazine, you share lessons from it. For example, to complement bond contracts’ collective-action clauses, which became a market standard in 2014, we must improve the international architecture for sovereign-debt restructuring – a task, you note, that the G20 has taken on in the context of the pandemic. Which changes are most urgent?
Martín Guzmán: Over the last four decades, sovereign-debt restructurings have often been too little, too late: the process is delayed, and when it eventually takes place, the debt relief provided is often insufficient to restore debt sustainability and enable economic recovery. In fact, over the same period, more than half of sovereign-debt restructurings with private creditors have been followed by another restructuring or a default within five years.
About the Author
Associate Research Scholar
Graduate School of Business
Martin Guzman is a Associate Research Fellow at Columbia University Graduate School of Business and an Associate Professor at Universidad de Buenos Aires.
He is a co-chair of Columbia University Initiative for Policy Dialogue's Taskforce on Debt Restructuring and Sovereign Bankruptcy, and a member of the INET Research Group on "Macroeconomic Externalities” chaired by Professor Joseph Stiglitz. He is also a Senior Fellow in CIGI’s Global Economy Program. He is an Editor of the Journal of Globalization and Development.
He holds a PhD in Economics from Brown University. His research fields are Macroeconomics and Economic Development.