Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

EU Says G-20 Debt Restructuring Talks Could Roil Markets

Don't Miss Out —
Follow us on:

Feb. 6 (Bloomberg) -- The Group of 20 nations should take care not to spook markets if they decide to discuss sovereign debt restructuring when finance ministers and central bankers meet next week in Moscow, the European Union said in a planning document prepared for the Feb. 14-16 meeting.

Russia has proposed adding the topic to the meeting’s agenda via talks on the Institute of International Finance’s proposed best practices. IIF, the Washington-based trade group that represented creditors in Greece’s landmark restructuring last year, drew up the guidelines in order to prevent future strains from triggering a sovereign debt crisis like the one facing the euro area for the past three years.

“The EU does not oppose discussing this issue, but we should be aware that it could be market sensitive, in particular in light of the recent legal case on Argentinian debt,” the EU said in its G-20 planning document, dated Feb. 5.

Argentina, which defaulted on $95 billion of bonds in 2001, has been appealing an Oct. 26 U.S. court ruling that said the country can’t treat holders of its restructured debt more favorably than so-called holdout creditors who didn’t take part in writedowns.

The EU document also calls on the U.S. to reach a “credible” medium-term budget plan and tackle high unemployment. Japan needs to meet its medium-term fiscal commitments and China needs to accelerate structural reforms and move “more rapidly” toward a market-based currency system.

The EU assessed its own prospects as much improved, saying “tail risks have significantly receded in the euro area thanks to strong policy actions.” It also said it remains committed to a “timely and consistent implementation” of the Basel III capital accords, which have been delayed in Europe and the U.S. as discussions continue on how to implement the standards.

To contact the reporter on this story: Rebecca Christie in Brussels at rchristie4@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.