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Under bankruptcy laws or out-of-court settlement guidelines, such as the London Rules, the Jakarta Initiatives or the Hong Kong Guidelines, when a corporate is facing financing difficulties, the responsibility is passed to the debtor and creditors to arrange debt settlements among themselves. Indebted companies can reorganise and restructure their operations to return to profitability. In turn, creditors agree to reschedule loans or accept the conversion of debt into equity. While the basic principles of private creditor participation in resolving the debtor’s dilemma are uncontroversial, the application of these principles to sovereign debt is much more complex. Debt workouts in the corporate and public sectors are quite different. First, assessing the solvency of a country is different from that of a company. The former requires not only an analysis of the cash flow, the balance sheet and the assets and liabilities but also an evaluation of the political will to implement the measures needed to ensure that the country remains solvent. The capacity to service debt requires both a willingness and an ability to implement policies that will generate the necessary resources. To quote the example of Greece: it has a gross debt of around € billion and marketable assets worth up to € billion, so the country is solvent to the extent that it is willing to sell off some of these assets.