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
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