Sovereign Debt Restructuring

Sovereign Debt Restructuring refers to the process where a country that owes money to creditors, such as other countries or banks, negotiates to change the terms of its debt. This can involve extending the repayment period, reducing the amount owed, or lowering interest rates. Funded by economic pressures, like recessions or high debt levels, this restructuring aims to make it easier for the country to manage its finances without defaulting on its obligations. It’s a way to help nations regain financial stability while attempting to satisfy their creditors as best as possible.