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While useful, such legal technology is not necessary to achieve an orderly restructuring of sovereign debt previous instances illustrate that market-based restructurings via exchange offers are sufficient.
It would be far better to recognise reality and start an orderly restructuring of Greek debt now.
He added: "Anything that moves this process toward an orderly restructuring will be in the tenants' interest.
He urged "an early and orderly restructuring" of their liabilities to avoid spreading the crisis to bigger countries, like Spain.
He listed various types of contractual provisions for international bonds which, he said, would "enhance the prospects of orderly restructuring".
At least that might allow for an orderly restructuring, if deemed necessary, rather than a complete market meltdown.
Similar(20)
It's difficult to maintain political support for orderly debt restructuring, and so on.
But Mr. Bini Smaghi contested the idea that "there exists such a thing as an orderly debt restructuring".
The least costly outcome now looks like an orderly debt restructuring, which might mean higher borrowing costs for other countries.
An orderly debt restructuring for a country within the euro zone would not be the end of the world, or indeed of the single currency.
Signs that Greece is slacking off may undermine any chance of arranging an orderly debt restructuring as part of the planned Franco-German "grand bargain" in the euro zone.Greece hopes to be allowed to buy back debt held by the ECB at a 25% discount, using money borrowed from the European Financial Stability Facility.
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