This lack of an effective debt restructuring system at the international level encourages free riders such as vulture funds to exploit the generosity of other creditors who provide debt relief, which in turn reduces the incentives on all creditors to accept a reduction in their claims on the sovereign.
There are about 50 countries with an exchange rate regime linked to the euro, including those EU Member States that have not yet joined the euro area. Non-EU countries that use the euro as an anchor currency are mainly located in the EU’s neighbouring regions or are countries that have established special institutional arrangements with the EU or some of the EU Member States.