Sovereign Debt Default Debate Moves To World Bank In DC

As previously reported in ValueWalk, the International Monetary Fund has released a staff report on handling sovereign debt restructuring that the “holdout hedge funds” might not like. The release of the report, titled “Strengthening The contractual Framework to Address Collective Action in Problems in Sovereign Debt Restructuring,” comes as a separate IMF “World Economic Outlook Report” warns that the world economy may not return to the level of growth witnessed before the 2008 credit crisis. The economic report, “Legacies, Clouds, Uncertainties,” downgrades the world growth forecast to 3.3 percent, lower by 0.4 percent from the April, 2014 report. Strong economic…