A Mature Approach: Using a Unilateral or Voluntary Extension of Maturities To Restructure Italian Debt

19 Pages Posted: 7 Jun 2012 Last revised: 10 Jan 2013

See all articles by Andrew Edelen

Andrew Edelen

affiliation not provided to SSRN

Paige Gentry

affiliation not provided to SSRN

Jessalee Landfried

affiliation not provided to SSRN

Theresa Monteleone

affiliation not provided to SSRN

Date Written: November 27, 2012

Abstract

As the Eurozone debt crisis deepens, many European countries must determine how to restructure their debt, should it become necessary. Italy, while faced with a large debt burden, has the opportunity to prevent a future liquidity crisis by extending maturities on its existing debt. Fortunately, Italy has tools it needs to facilitate a voluntary reprofiling. This paper argues that by using the specter of the Greek restructuring and existing Italian law, which permits Italy to extend maturities, Italy can persuade its bondholders to participate in a voluntary exchange.

Keywords: Italy, sovereign debt, liquidity, maturity extension, restructuring

Suggested Citation

Edelen, Andrew and Gentry, Paige and Landfried, Jessalee and Monteleone, Theresa, A Mature Approach: Using a Unilateral or Voluntary Extension of Maturities To Restructure Italian Debt (November 27, 2012). Available at SSRN: https://ssrn.com/abstract=2077995 or http://dx.doi.org/10.2139/ssrn.2077995

Andrew Edelen

affiliation not provided to SSRN

Paige Gentry

affiliation not provided to SSRN

Jessalee Landfried (Contact Author)

affiliation not provided to SSRN

Theresa Monteleone

affiliation not provided to SSRN

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