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They make it marginally easier to restructure an individual bond, but make little difference when there are 80 different bonds involved.
And they can reform bankruptcy and tax laws to make it easier to restructure corporate and personal debts.Most countries have already put a few of these reforms in place.
In 2007 China adopted a new bankruptcy law its first since 1949 and 11 years in the making that makes it easier to restructure insolvent firms.The credit crunch has speeded up the pace of reform.
But the bond market's nerves have been shredded again by the likelihood that from 2013, when a permanent bail-out mechanism is due to be in place, it will be easier to restructure an insolvent country's debts.
They also favor changing tax rules to make it easier to restructure loans (under current regulations, the parties would incur tax penalties), and eliminating what they say are onerous taxes on foreign real estate investment.
Sants told the BBC that full nationalisation might have been better and appeared to indicate that more capital might have to be put into the banks because of the eurozone crisis: "I do think there's an argument that says it would have been easier to restructure … if the banks did not have minority shareholdings in the private sector.
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These loans can be serviced from export earnings, and are therefore relatively easy to restructure.
"We thought we would do the honorable thing and offer the administrator an easier way to restructure the panel, and we all resigned," Mr. Foushee said.
But to the extent that there's a good solution to this problem, it involves the government doing more to limit the number of foreclosures and making it easier for people to restructure their mortgages so they can make regular payments and still stay in their homes.
Renaissance Capital analyst Alexander Burgansky told Forbes that owning the whole company would make it easier for Gazprom to restructure itself, perhaps spinning off its oil division into a separate company and allowing it to more fully control acquisition strategies.
NOBODY thought it would be easy for Pakistan to restructure its international sovereign bonds.
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Justyna Jupowicz-Kozak
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