Sovereign Debt Distress, Restructurings and Market Access: The Cases of Ireland, Portugal, and Cyprus
Date: Thursday, February 28, 2019
LeBow College of Business
Sovereign Debt Distress, Restructurings and Market Access: The Cases of Ireland, Portugal, and Cyprus
Register today! GIC and Drexel’s LeBow College of Business are bringing back the conference on Sovereign Debt Restructurings on February 28th, 2019.
During the Euro debt crisis in 2010-2016, Ireland, Portugal, and Cyprus, along with Greece, were not able to cover all their financing needs in financial markets through medium- and long-term bond financing, or at a sustainable cost, for varying time periods. However, economic adjustment programs, which included measures to strengthen their banking sectors, and the creation of a Euro area crisis-resolution framework (EFSF and ESM) helped these countries regain investor confidence and full market access. This conference will address the main causes and policy responses of Ireland, Portugal, and Cyprus to their individual debt distress situations, discuss various market, legal, and policy perspectives on each of these distress and restructuring cases, and distill lessons for successfully overcoming debt distresses and regaining access to capital markets.
Students of LeBow College of Business can register through Drexel University here.
8:30 a.m. | Registration and Coffee/Light Refreshments
9:00 a.m. | Welcoming Remarks
- Paul Jensen, R. John Chapel Jr. Dean, LeBow College of Business, Drexel University
9:05 a.m. | Opening Remarks: Challenges and Responses to Sovereign Debt Distress and Restructurings
- George Tsetsekos, Francis Professor of Finance and Dean Emeritus, LeBow College of Business and GIC
- Michael G. Papaioannou, TA Expert-Advisor, IMF and Visiting Scholar and Professor, LeBow College of Business
9:10 – 9:40 a.m. Keynote Address
- Kristian Orsini, Counsellor – Economic and Financial Affairs, Delegation of the European Union to the USA
9:40 – 10:40 a.m. | Session 1: The Euro Debt Crisis: The Successful Experiences of Ireland, Portugal, and Cyprus
- Chair: Aitor Erce, Principal Economist, European Stability Mechanism
- Ireland: Thordur Jonasson, Deputy Division Chief, IMF
- Portugal: Marcos Souto, Senior Financial Sector Expert, IMF
- Cyprus: Konstantinos Polykarpou, Consul, Embassy of the Republic of Cyprus, & Tamon Asonuma, Economist, IMF, & Kay Chung, Senior Research Officer, IMF
- Macroeconomic settings and specific challenges for Ireland, Portugal, and Cyprus in the context of the European Debt Crisis
- Policy reactions, adjustment programs, and political perceptions in the three countries
- Role of EU/ECB and IMF in the three countries
- Economic outcomes, market re-access, return to normalcy
- Global perspectives and implications
10:40 – 11:45 a.m. | Session 2: Market, Legal and International Policy Perspectives on Ireland, Portugal and Cyprus Sovereign Debt Distress and Restructurings
- Chair: Rafael Molina, Managing Partner, NewState Partners
- Hans Humes, President and CIO, Greylock Capital Management
- Elena Duggar, Chair, Macroeconomic Board, Moody’s Investors Services
- Steven Kargman, President, Kargman Associates
- Creditor perspectives, loss of market access, and preconditions for re-accessing
- Legal challenges in sovereign debt distress and restructurings — focusing on the cases of Ireland, Portugal, and Cyprus, what sovereigns and creditors should be aware of?
- The international financial institutions perspective – could changes in their policies contribute to a more efficient resolution of sovereign debt distress and restructuring cases? What is missing?
- Credit Rating Agency perspectives
11:45 – 11:55 a.m. | Break
11:55 a.m. – 1:00 p.m. | Session 3: Lessons Learned and Prospects
- Chair: Tamon Asonuma, Economist, IMF
- Juan Sanchez, Assistant Vice President, Federal Reserve Bank of St. Luis
- Satyajit Chatterjee, Senior Economic Advisor, Federal Reserve Bank of Philadelphia
- Aitor Erce, Principal Economist, European Stability Mechanism
- Tiago Tavares, Professor of Economics, Instituto Tecnológico Autónomo de México
- Prevention versus resolution – can sovereigns, creditors, and IFIs do more to prevent debt distress situations and restructurings? If yes, what? Or, are sovereign debt distresses and restructurings inevitable?
- What are the lessons from the Irish, Portuguese and Cypriot experiences for policy adjustments and market interactions of countries that enter market distress or undergo restructuring?
- Are the prospects for sovereign debt restructurings of advanced economies better than for EMs and low-income countries?
- Do implications of restructurings improve over time?
1:00 p.m. | Concluding Remarks
Address: 3220 Market Street, Philadelphia, PA 19104Download iCal
Tamon AsonumaEconomist in the Strategy Policy and Review Department, IMF
Tamon Asonuma is an Economist in the Strategy Policy and Review Department of the IMF. Since joining the IMF on September 2010, he has spent most of times in Research Department and Strategy Policy and Review Department.
Satyajit ChatterjeeSenior Economic Advisor in the Research Department of the Federal Reserve Bank of Philadelphia
Satyajit Chatterjee is Senior Economic Advisor in the Research Department of the Federal Reserve Bank of Philadelphia. He joined the Bank in 1991 and has held his current position since 2002. Prior to joining the Bank he was faculty at the University of Iowa. He has held visiting faculty positions at the Wharton School and the University of Texas at Austin and is a visiting fellow at Drexel University’s School of Economics.
Elena DuggarChair of Moody’s Macroeconomic Board
Elena Duggar is the Chair of Moody’s Macroeconomic Board, which is charged with developing the macroeconomic forecasts for use in the rating process throughout the rating agency. Elena also manages the Research team in the Credit Strategy and Research group, which authors Moody’s global macroeconomic outlooks, along with thematic research on macro and financial risk topics.
Aitor ErcePrincipal Economist, European Stability Mechanism
Aitor Erce is a Principal Economist at the European Stability Mechanism. He is also a research affiliate with the Federal Reserve Bank of Dallas and former research economist at the General Directorate of International Affairs of the Bank of Spain.
Paul JensenDean, R. John Chapel, Jr. Dean’s Chair, LeBow College of Business, Drexel University
Dr. Jensen is the dean of the LeBow College of Business and associate professor of economics. His primary research areas are international trade and applied microeconomics.
Thordur JonassonSenior Financial Sector Expert in the Monetary and Capital Markets Department, IMF
Mr. Thordur Jonasson is a Senior Financial Sector Expert in the Monetary and Capital Markets Department of the IMF. Prior to joining the IMF, he was a Sr. Securities Markets Specialist in the Global Capital Markets Practice of the World Bank working on developing public and private debt markets and participating in the Financial Sector Assessment Program (FSAP).
Steven T. KargmanFounder and President of Kargman Associates
Steven T. Kargman is the Founder and President of Kargman Associates, a New York City-based strategic advisory firm specializing in providing strategic advice to clients involved in complex and challenging international restructurings, with a special focus on emerging markets around the globe.
Rafael M. MolinaManaging Partner, Newstate Partners
Rafael has over 18 years of experience assisting sovereign and sub-sovereign clients implement liability and risk management strategies aimed at optimising debt service profiles. In recent years Rafael has worked closely with the Authorities in Antigua and Barbuda, Barbados, Iraq and Liberia in addressing rising public-sector debt challenges.
Kristian OrsiniCounsellor for Economic and Financial Affairs, EU Delegation to the United States of America
Kristian (Kris) Orsini is Counsellor for Economic and Financial Affairs at the Delegation of the European Union to the United States. His primary areas of responsibility include US economic and economic policy developments, transatlantic economic relations and relations between the EU and Multilateral Financial Institutions, mainly the IMF.
Michael G. PapaioannouExpert Advisor, International Monetary Fund
Dr. Michael G. Papaioannou serves as an Expert Advisor at the International Monetary Fund and is a Visiting Scholar and Professor at the LeBow College of Business, School of Economics, Drexel University.
Konstantinos PolykarpouConsul/Political Counselor of the Embassy of the Republic of Cyprus to the United States
Konstantinos Polykarpou is the Consul/Political Counselor of the Embassy of the Republic of Cyprus to the United States.
Jonathan PrinManaging Director, Head of Research, Greylock Capital
Mr. Prin joined Greylock Capital in February 2015 as Managing Director, Head of Research. Prior to joining Greylock Capital, he was a portfolio manager and member of the Global Fixed Income Group at JP Morgan Asset Management.
Juan M. SánchezAssistant Vice President and Economist, Federal Reserve Bank of St. Louis
Juan M. Sánchez is an Assistant Vice President and economist at the Federal Reserve Bank of St. Louis. He is also an Associate Editor of the Journal of Economic Dynamics and Control.
Marcos SoutoFinancial Sector Expert, International Monetary Fund
With over 25 years of professional experience, Mr. Souto started his career as a Mechanical Engineer and later as a tenured professor at a Brazilian University, following the conclusion of his graduate studies on computational fluid dynamics and heat transfer.
Tiago TavaresProfessor of Economics, Instituto Tecnológico Autónomo de México
Tiago Tavares is is a professor of economics at the Instituto Tecnológico Autónomo de México and currently also affiliated with the Centro de Investigación Económica in Mexico. He graduated from the University of Rochester in 2015 with a dissertation topic related with sovereign debt default.
George Tsetsekos, Ph.D.Dean Emeritus and the Francis Professor of Finance at LeBow’s College of Business at Drexel University
Dr. George Tsetsekos, serves as the Francis professor of Finance and Director of the Risk Management Center at the LeBow College of Business. He served as Dean of LeBow (2002-2012) and under his transformative leadership the college achieved national rankings and quality milestones in research and teaching.