Activists on both sides of the Atlantic recently lost separate bids to force private sector bond investors to negotiate debt relief for lower-income countries.
The failed legislative efforts in New York and London — where the majority of sovereign bonds are issued — aimed to help the rising number of debt-distressed countries restructure what they owe, including to private investors. New York laws govern roughly half of the foreign bonds issued by emerging-market countries — about $800 billion.
• Nations that default are often stuck in limbo for years, unable to restructure their debt, get back on their feet, or borrow money for critical projects. Pushing private creditors to play ball could address that amid a rising debt crisis in the global south.
About the authors
Adva Saldinger@AdvaSal
Adva Saldinger is a Senior Reporter at Devex where she covers development finance, as well as U.S. foreign aid policy. Adva explores the role the private sector and private capital play in development and authors the weekly Devex Invested newsletter bringing the latest news on the role of business and finance in addressing global challenges. A journalist with more than 10 years of experience, she has worked at several newspapers in the U.S. and lived in both Ghana and South Africa.
Shabtai Gold
Shabtai Gold is a Senior Reporter based in Washington. He covers multilateral development banks, with a focus on the World Bank, along with trends in development finance. Prior to Devex, he worked for the German Press Agency, dpa, for more than a decade, with stints in Africa, Europe, and the Middle East, before relocating to Washington to cover politics and business.
