St Kitts sets the model for debt restructuring
Simultaneously with Greece, St Kitts with a similar debt overhang, negotiated a restructuring (finance parlance for a debt reduction) of 50% reduction. This was all done quietly and after a few months negotiation.
The financial crisis has far reaching consequences, yet the consequences are somehow more obvious with such small countries than with large.
A proper debt restructuring | ft.com
Basseterre, St Kitts: The Government of St Kitts and Nevis announced today that the
exchange offer launched on 27 February 2012 has received the overwhelming support of
its creditors.… …
The New Discount Bonds, which are to be partially guaranteed by the Caribbean Development Bank, entail a 50% reduction in face value. The balance is to be repaid over 20 years, with coupons set at 6% for the first four years, stepping down to 3% thereafter
