Monday 9 June 2014

Preferred credits and the IMF

CIGI Senior Fellow, Susan Schadler, has an interesting post, here, on the IMF's preferred creditor status. Briefly, this refers to the fact that the IMF enjoys a senior status among creditors in the case of sovereign debt restructuring. As Susan notes, this is a legal convention that is agreed to in practice but is not supported in treaty or international law. As a convention, it is subject to change should the implicit understanding that has supported it be eroded.

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