Koszty restrukturyzacji zadłużenia zagranicznego państwa
The costs of sovereign debt restructurings

Summary/Abstract: Theory implies that sovereign defaults can be costly and therefore states usually repay their debts.The paper focuses especially on answering the question: Is the empirical evidence on sovereign defaults consistent with the predictions and assumptions of the theoretical literature? Or do we have to change our views based on the new empirical works? The paper surveys the economic literature on sovereign defaults and restructurings with a focus on the new empirical contributions. The paper finds limited support for theorical explanations that sovereign defaults lead to external sanctions or exclusion from the international capital market and for more support for explanations that emphasize domestic costs of default.

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