Such clauses can substantially reduce the risk of litigation and asset attachment, once a majority of creditors has agreed on debt restructuring. The IMF has proposed a Sovereign Debt Restructuring Mechanism similar to national bankruptcy codes for enterprises. However, as so many questions of both a practical and legal nature remain open, such a statutory approach will not be available for years.
In a first step, set the rules at the international level. As a second step, rigorously monitor their translation in national laws and regulations to ensure consistency and a global level playing field.