Since Puerto Rico has no recourse to either Chapter 9 of the US Bankruptcy Code or its own law, it must negotiate with its creditors without any pre-established process or framework. Under this circumstances, it is helpful to discuss the roadmap prepared by the UN, which strives to present steps that countries can take before and during debt restructuring within the context of five principles that should provide guidance in the negotiation process.
Euromoney - Global Insolvency & Restructuring Review 2013-14Anindya Roychowdhury
Three key points:
1) Kuwait was one of the first countries to introduce a stimulus package after the 2008 credit crunch, allocating $14 billion, but there has been limited success with only one case admitted under the bailout scheme and workouts being held up by regulatory hurdles.
2) Investment companies (ICs) in Kuwait, many of which were overleveraged, have struggled amid falling asset values and tightening regulations, with most ICs now headed towards default and in need of restructuring.
3) Restructurings have faced challenges due to reluctance among fragmented lenders to coordinate, cultural preferences for rescheduling over restructuring, and lack of specialized re
This presentation serves as study notes for the e-learning material titled: "South African Hedge funds and international developments"
These notes focus on Dodd Frank and its Impact on the Hedge Fund Industry.
http://www.hedgefund-sa.co.za/dodd-frank
WG Consulting held an early morning breakfast seminar at the Houston Junior League to discuss the Dodd-Frank Compliance landscape as it currently stands as is expected to shape out--and how that effects energy businesses of all sizes today.
May 13, 2015 Webinar
Presented by EDR & EBA
“The Dodd-Frank Act” is all over the news. It’s reportedly killing community banks, and will impact all of the banking members in this distribution in some capacity. In continuation of a February Environmental Bankers Association - Risk Management Call (EBA-RMC) John Rybak and Greg Lampe of BB&T Bank, and attorney Brad Merrill of Snell-Wilmer, will provide an explanation of what’s going on, notably with respect to Banking Vendor Management (“vetting the vendors”).
Since its passage in 2010, implementation and interpretation of the 2,323 page long Dodd-Frank Act has touched most every part of banking including how banks use vendors, particularly in the area of mortgages and consumer compliance. Five years later there remains substantial uncertainty as new rule making continues. During our call we will provide a summary of key regulatory areas every banker should be aware of in vendor management as well as some of the general results of Dodd-Frank and exposure for non-compliance.
An International Insolvency Law for Sovereign Debt? Learnings from the Euro ...Luca Amorello
Presentation of my new paper:
'An International Insolvency Law for Sovereign Debt?'
Seminar on “Sovereign Debt Restructuring and the Rights of Private Creditors”.
July 14, 2014,
House of Finance - Frankfurt.
The dodd frank effect on information managementExterro
The document discusses the Dodd-Frank Act and its potential impact on information governance and recordkeeping requirements for financial institutions. It provides an overview of the Act and the status of agencies' responses, noting many rules have yet to be finalized. The Act gives various agencies broad authority to establish new recordkeeping and reporting rules that could significantly impact organizations.
The dodd frank effect on information managementExterro
The document discusses the Dodd-Frank Act and its potential impact on information governance and recordkeeping requirements for financial institutions. It provides an overview of the Act and the status of agencies' responses, noting many proposed rules around recordkeeping but no finalized additional requirements yet. The Act gives various agencies broad authority to establish new recordkeeping and reporting obligations for companies.
Euromoney - Global Insolvency & Restructuring Review 2013-14Anindya Roychowdhury
Three key points:
1) Kuwait was one of the first countries to introduce a stimulus package after the 2008 credit crunch, allocating $14 billion, but there has been limited success with only one case admitted under the bailout scheme and workouts being held up by regulatory hurdles.
2) Investment companies (ICs) in Kuwait, many of which were overleveraged, have struggled amid falling asset values and tightening regulations, with most ICs now headed towards default and in need of restructuring.
3) Restructurings have faced challenges due to reluctance among fragmented lenders to coordinate, cultural preferences for rescheduling over restructuring, and lack of specialized re
This presentation serves as study notes for the e-learning material titled: "South African Hedge funds and international developments"
These notes focus on Dodd Frank and its Impact on the Hedge Fund Industry.
http://www.hedgefund-sa.co.za/dodd-frank
WG Consulting held an early morning breakfast seminar at the Houston Junior League to discuss the Dodd-Frank Compliance landscape as it currently stands as is expected to shape out--and how that effects energy businesses of all sizes today.
May 13, 2015 Webinar
Presented by EDR & EBA
“The Dodd-Frank Act” is all over the news. It’s reportedly killing community banks, and will impact all of the banking members in this distribution in some capacity. In continuation of a February Environmental Bankers Association - Risk Management Call (EBA-RMC) John Rybak and Greg Lampe of BB&T Bank, and attorney Brad Merrill of Snell-Wilmer, will provide an explanation of what’s going on, notably with respect to Banking Vendor Management (“vetting the vendors”).
Since its passage in 2010, implementation and interpretation of the 2,323 page long Dodd-Frank Act has touched most every part of banking including how banks use vendors, particularly in the area of mortgages and consumer compliance. Five years later there remains substantial uncertainty as new rule making continues. During our call we will provide a summary of key regulatory areas every banker should be aware of in vendor management as well as some of the general results of Dodd-Frank and exposure for non-compliance.
An International Insolvency Law for Sovereign Debt? Learnings from the Euro ...Luca Amorello
Presentation of my new paper:
'An International Insolvency Law for Sovereign Debt?'
Seminar on “Sovereign Debt Restructuring and the Rights of Private Creditors”.
July 14, 2014,
House of Finance - Frankfurt.
The dodd frank effect on information managementExterro
The document discusses the Dodd-Frank Act and its potential impact on information governance and recordkeeping requirements for financial institutions. It provides an overview of the Act and the status of agencies' responses, noting many rules have yet to be finalized. The Act gives various agencies broad authority to establish new recordkeeping and reporting rules that could significantly impact organizations.
The dodd frank effect on information managementExterro
The document discusses the Dodd-Frank Act and its potential impact on information governance and recordkeeping requirements for financial institutions. It provides an overview of the Act and the status of agencies' responses, noting many proposed rules around recordkeeping but no finalized additional requirements yet. The Act gives various agencies broad authority to establish new recordkeeping and reporting obligations for companies.
An Actuarial View Of Financial Reforms And 2010 Dodd Frank Actmfrings
The document summarizes a presentation given by Michael Frings on the Dodd-Frank Act and its impact on the financial industry and insurance companies. It provides an overview of the events leading to the Dodd-Frank Act, key provisions and new regulatory bodies it establishes such as the Financial Stability Oversight Council and the Bureau of Consumer Financial Protection. It also discusses the Act's effects on derivatives markets and potential implications for insurance companies' hedging activities and product offerings.
Differences in the Brazilian and US Bankruptcy Codestonyprada
I put together this presentationt to demonstrate the differences in the US (USBC) and Brazilian Bankruptcy Codes (BBC). If you have any questions, please do not hesitate to ask! Tony
The document provides an overview and analysis of the Dodd-Frank Act, which was passed by Congress in 2010 to address systemic risk in the U.S. financial system following the 2008 financial crisis. It discusses key aspects of the Act, including the creation of the Financial Stability Oversight Council to monitor systemic risk, restrictions on the Federal Reserve's ability to bail out failing institutions, the introduction of resolution authority as an alternative to bailouts, and new regulations around executive compensation. The analysis questions whether some of the Act's approaches for dealing with failing banks and systemic risk, such as resolution authority, will be effective in practice.
some recent insolvency developments - Law Council John Burke
The document summarizes key points from a report on recent insolvency developments related to managed investment schemes in Australia. It discusses proposals for a new legal structure where the scheme itself would be a separate legal entity, simplifying issues around changing responsible entities and winding up schemes. It also recommends allowing schemes to enter voluntary administration to facilitate restructuring. The goal is to address problems with the current legal framework and better protect third parties.
The document provides an overview of recent legislative, regulatory, and policy developments that are impacting the financial services industry. Key points include:
- The Economic Growth, Regulatory Relief, and Consumer Protection Act provides regulatory relief for smaller banks and raises various asset thresholds.
- Recent speeches by Federal Reserve officials emphasize transparency in regulatory policies and balancing pre-positioning of capital with flexibility.
- The OCC Comptroller is urging banks to meet consumers' short-term small dollar credit needs.
- The presentation discusses the implications of these changes for regulatory burden, competition between large and small banks, and issues for banks' boards of directors to consider.
Basel iii Compliance Professionals Association (BiiiCPA)
http://www.basel-iii-association.com
The Basel iii Compliance Professionals Association (BiiiCPA) is the largest association of Basel iii Professionals in the world. It is a business unit of the Basel ii Compliance Professionals Association (BCPA), which is also the largest association of Basel ii Professionals in the world.
Receive (at no cost) the New Member Orientation newsletters:
http://www.basel-iii-association.com/New_Member_Orientation_Newsletters.html
Subscribe to Receive (at no cost) Basel II / Basel III Related News, Alerts, Opportunities, Updates, our Monthly Newsletter and Limited Time Offers for our Basel II / Basel III Training and Certification Programs:
http://forms.aweber.com/form/42/1586130642.htm
Presentation by Marco Committeri and Pietro Tommasino Bank of Italy
Conference on:
“Sovereign Debt Crises: Prevention and Management"
Rome, 10 December 2018
Dodd Frank Act 2015 Rule Implementation: Will The World End?Jillayne Schlicke
The Dodd Frank Act Rule Implementation of 2015 will bring another set of changes to the lending and escrow industries. Spoiler alert: The world will not end.
This document summarizes key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act related to the creation of the Consumer Financial Protection Bureau (CFPB). It outlines the CFPB's structure, functions, rulemaking authority, and enforcement powers. Additionally, it discusses ways state Attorneys General can partner with the CFPB, including compelling rulemaking, petitioning for rulemaking, and commenting on proposed rules. The overall goal is to establish an effective partnership between the CFPB and state AGs to enforce consumer financial protection.
The document summarizes key provisions of the recently passed Financial Reform Law. It discusses regulations that will expand federal oversight of financial institutions, create a new Consumer Financial Protection Bureau, and reform mortgage and lending practices. Major changes include restricting proprietary trading by banks, requiring "skin in the game" for risky asset-backed securities, and new rules regarding debit/credit fees charged to retailers. The full implementation of the law will take years and financial institutions should consult legal counsel on how it affects their practices.
The document discusses soft law and its use in international financial regulation. It defines soft law as non-binding rules or standards that still influence behavior. International bodies like the BCBS and IOSCO create largely nonbinding standards for their member countries. The European Systemic Risk Board is presented as a case study of a soft law body that issues recommendations to address systemic financial risks but has no binding powers. The power of soft law lies in its "name and shame" mechanism, as noncompliance can still damage a country's reputation in financial markets.
The document discusses Dodd-Frank, a law passed in 2010 to reform financial regulation after the 2008 crisis. It summarizes Dodd-Frank's key objectives of ending bailouts, increasing stability and regulating abusive practices. However, it argues Dodd-Frank failed to meet these objectives and instead increased concentration, harmed consumers, and relied too heavily on regulation undermining market discipline. It also notes areas where Dodd-Frank granted regulators broad discretion and new agencies with limited accountability.
Enhanced Infrastructure Districts (EIFDs) are a new tool created by California legislation that allow local governments greater flexibility to fund infrastructure and community development projects. EIFDs can be formed by cities or counties to invest in public facilities and projects of community significance. They have more power than previous funding mechanisms, including a lower voter approval threshold of 55% to issue bonds. EIFDs also have broad discretion over what types of public and private development projects they can support through financing and public-private partnerships.
A discussion of the creation of the Oversight Board by the Puerto Rico Oversight, Management, and Economic Stability Act: its members, legal jurisdiction, funding source, and unlimited discretion.
The important role of the Department of Defense in the US's policies regarding Puerto Rico: the restructuring of debt is just an excuse to increase the DoD's activity in Puerto Rico
A discussion of Title III of the Puerto Rico Oversight, Management, and Economic Stability Act to establish a proceeding for the adjustment of Puerto Rico debts.
The document summarizes changes between versions 1 and 2 of the PROMESA bill. Key changes include increasing the Oversight Board members from 5 to 7, requiring Board member expertise in municipal bond markets, allowing the Board to have offices outside of DC, and shifting jurisdiction for PROMESA legal matters from DC courts to Puerto Rico district courts. However, the document argues these changes do little to address the bill's "colonialist" overreach and control over Puerto Rico's economy and governance.
Puerto Rico- Distressed Debt Strategy. Duke GS Trade Pitch CompetitionJulio Cesar
The document recommends selling 21-year Puerto Rico general obligation (GO) bonds based on several distressed debt triggers that indicate increased credit risk for Puerto Rico. Specifically, it cites the high coupon rate demanded for recent short-term debt issuance, an underpricing of default risk for Puerto Rico's Highway and Transportation Authority bonds, and a municipal credit risk model that assessed a higher spread than the bonds are currently trading at. The recommendation is to sell the bonds with a target price of $82.75, down from the current price of $88.75.
This presentation discusses the importance of front-end regulations when issuing debt, and the importance of conducting an adequate due diligence before investing in sovereign debt. Ignoring the details of applicable law to a bond issuance are not “back-end changes” when an issuer implements measures authorized by applicable law.
O documento discute o imperialismo dos EUA na América Latina no final do século XIX e início do século XX. Ele descreve como os EUA usaram intervenções militares diretas e indiretas, como empréstimos e tratados, para expandir sua influência política e econômica na região, notadamente em Cuba e no Panamá. A política do "Big Stick" de Theodore Roosevelt encorajou a intervenção dos EUA sempre que seus interesses estivessem em jogo.
O documento descreve o imperialismo dos EUA na América Latina no final do século XIX e início do século XX, incluindo a intervenção em Cuba durante a Guerra Hispano-Americana e a ajuda dos EUA na independência do Panamã da Colômbia para construir o Canal do Panamá.
O documento discute o imperialismo estadunidense na América Latina no século XX. Ele descreve como os EUA usaram políticas como a Doutrina Monroe e o Big Stick para dominar economicamente a região através da busca por matérias-primas, mercados e bases estratégicas, levando à ocupação de Cuba e incentivando a independência do Panamá para construir o Canal do Panamá.
An Actuarial View Of Financial Reforms And 2010 Dodd Frank Actmfrings
The document summarizes a presentation given by Michael Frings on the Dodd-Frank Act and its impact on the financial industry and insurance companies. It provides an overview of the events leading to the Dodd-Frank Act, key provisions and new regulatory bodies it establishes such as the Financial Stability Oversight Council and the Bureau of Consumer Financial Protection. It also discusses the Act's effects on derivatives markets and potential implications for insurance companies' hedging activities and product offerings.
Differences in the Brazilian and US Bankruptcy Codestonyprada
I put together this presentationt to demonstrate the differences in the US (USBC) and Brazilian Bankruptcy Codes (BBC). If you have any questions, please do not hesitate to ask! Tony
The document provides an overview and analysis of the Dodd-Frank Act, which was passed by Congress in 2010 to address systemic risk in the U.S. financial system following the 2008 financial crisis. It discusses key aspects of the Act, including the creation of the Financial Stability Oversight Council to monitor systemic risk, restrictions on the Federal Reserve's ability to bail out failing institutions, the introduction of resolution authority as an alternative to bailouts, and new regulations around executive compensation. The analysis questions whether some of the Act's approaches for dealing with failing banks and systemic risk, such as resolution authority, will be effective in practice.
some recent insolvency developments - Law Council John Burke
The document summarizes key points from a report on recent insolvency developments related to managed investment schemes in Australia. It discusses proposals for a new legal structure where the scheme itself would be a separate legal entity, simplifying issues around changing responsible entities and winding up schemes. It also recommends allowing schemes to enter voluntary administration to facilitate restructuring. The goal is to address problems with the current legal framework and better protect third parties.
The document provides an overview of recent legislative, regulatory, and policy developments that are impacting the financial services industry. Key points include:
- The Economic Growth, Regulatory Relief, and Consumer Protection Act provides regulatory relief for smaller banks and raises various asset thresholds.
- Recent speeches by Federal Reserve officials emphasize transparency in regulatory policies and balancing pre-positioning of capital with flexibility.
- The OCC Comptroller is urging banks to meet consumers' short-term small dollar credit needs.
- The presentation discusses the implications of these changes for regulatory burden, competition between large and small banks, and issues for banks' boards of directors to consider.
Basel iii Compliance Professionals Association (BiiiCPA)
http://www.basel-iii-association.com
The Basel iii Compliance Professionals Association (BiiiCPA) is the largest association of Basel iii Professionals in the world. It is a business unit of the Basel ii Compliance Professionals Association (BCPA), which is also the largest association of Basel ii Professionals in the world.
Receive (at no cost) the New Member Orientation newsletters:
http://www.basel-iii-association.com/New_Member_Orientation_Newsletters.html
Subscribe to Receive (at no cost) Basel II / Basel III Related News, Alerts, Opportunities, Updates, our Monthly Newsletter and Limited Time Offers for our Basel II / Basel III Training and Certification Programs:
http://forms.aweber.com/form/42/1586130642.htm
Presentation by Marco Committeri and Pietro Tommasino Bank of Italy
Conference on:
“Sovereign Debt Crises: Prevention and Management"
Rome, 10 December 2018
Dodd Frank Act 2015 Rule Implementation: Will The World End?Jillayne Schlicke
The Dodd Frank Act Rule Implementation of 2015 will bring another set of changes to the lending and escrow industries. Spoiler alert: The world will not end.
This document summarizes key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act related to the creation of the Consumer Financial Protection Bureau (CFPB). It outlines the CFPB's structure, functions, rulemaking authority, and enforcement powers. Additionally, it discusses ways state Attorneys General can partner with the CFPB, including compelling rulemaking, petitioning for rulemaking, and commenting on proposed rules. The overall goal is to establish an effective partnership between the CFPB and state AGs to enforce consumer financial protection.
The document summarizes key provisions of the recently passed Financial Reform Law. It discusses regulations that will expand federal oversight of financial institutions, create a new Consumer Financial Protection Bureau, and reform mortgage and lending practices. Major changes include restricting proprietary trading by banks, requiring "skin in the game" for risky asset-backed securities, and new rules regarding debit/credit fees charged to retailers. The full implementation of the law will take years and financial institutions should consult legal counsel on how it affects their practices.
The document discusses soft law and its use in international financial regulation. It defines soft law as non-binding rules or standards that still influence behavior. International bodies like the BCBS and IOSCO create largely nonbinding standards for their member countries. The European Systemic Risk Board is presented as a case study of a soft law body that issues recommendations to address systemic financial risks but has no binding powers. The power of soft law lies in its "name and shame" mechanism, as noncompliance can still damage a country's reputation in financial markets.
The document discusses Dodd-Frank, a law passed in 2010 to reform financial regulation after the 2008 crisis. It summarizes Dodd-Frank's key objectives of ending bailouts, increasing stability and regulating abusive practices. However, it argues Dodd-Frank failed to meet these objectives and instead increased concentration, harmed consumers, and relied too heavily on regulation undermining market discipline. It also notes areas where Dodd-Frank granted regulators broad discretion and new agencies with limited accountability.
Enhanced Infrastructure Districts (EIFDs) are a new tool created by California legislation that allow local governments greater flexibility to fund infrastructure and community development projects. EIFDs can be formed by cities or counties to invest in public facilities and projects of community significance. They have more power than previous funding mechanisms, including a lower voter approval threshold of 55% to issue bonds. EIFDs also have broad discretion over what types of public and private development projects they can support through financing and public-private partnerships.
A discussion of the creation of the Oversight Board by the Puerto Rico Oversight, Management, and Economic Stability Act: its members, legal jurisdiction, funding source, and unlimited discretion.
The important role of the Department of Defense in the US's policies regarding Puerto Rico: the restructuring of debt is just an excuse to increase the DoD's activity in Puerto Rico
A discussion of Title III of the Puerto Rico Oversight, Management, and Economic Stability Act to establish a proceeding for the adjustment of Puerto Rico debts.
The document summarizes changes between versions 1 and 2 of the PROMESA bill. Key changes include increasing the Oversight Board members from 5 to 7, requiring Board member expertise in municipal bond markets, allowing the Board to have offices outside of DC, and shifting jurisdiction for PROMESA legal matters from DC courts to Puerto Rico district courts. However, the document argues these changes do little to address the bill's "colonialist" overreach and control over Puerto Rico's economy and governance.
Puerto Rico- Distressed Debt Strategy. Duke GS Trade Pitch CompetitionJulio Cesar
The document recommends selling 21-year Puerto Rico general obligation (GO) bonds based on several distressed debt triggers that indicate increased credit risk for Puerto Rico. Specifically, it cites the high coupon rate demanded for recent short-term debt issuance, an underpricing of default risk for Puerto Rico's Highway and Transportation Authority bonds, and a municipal credit risk model that assessed a higher spread than the bonds are currently trading at. The recommendation is to sell the bonds with a target price of $82.75, down from the current price of $88.75.
This presentation discusses the importance of front-end regulations when issuing debt, and the importance of conducting an adequate due diligence before investing in sovereign debt. Ignoring the details of applicable law to a bond issuance are not “back-end changes” when an issuer implements measures authorized by applicable law.
O documento discute o imperialismo dos EUA na América Latina no final do século XIX e início do século XX. Ele descreve como os EUA usaram intervenções militares diretas e indiretas, como empréstimos e tratados, para expandir sua influência política e econômica na região, notadamente em Cuba e no Panamá. A política do "Big Stick" de Theodore Roosevelt encorajou a intervenção dos EUA sempre que seus interesses estivessem em jogo.
O documento descreve o imperialismo dos EUA na América Latina no final do século XIX e início do século XX, incluindo a intervenção em Cuba durante a Guerra Hispano-Americana e a ajuda dos EUA na independência do Panamã da Colômbia para construir o Canal do Panamá.
O documento discute o imperialismo estadunidense na América Latina no século XX. Ele descreve como os EUA usaram políticas como a Doutrina Monroe e o Big Stick para dominar economicamente a região através da busca por matérias-primas, mercados e bases estratégicas, levando à ocupação de Cuba e incentivando a independência do Panamá para construir o Canal do Panamá.
1) No século XIX, as colônias latino-americanas tornaram-se independentes de Portugal e Espanha, mudando para sempre a história da região.
2) Após a independência, os novos países enfrentaram disputas territoriais e conflitos que levaram à mudança das fronteiras na América Latina.
3) Ao longo do século, os países da América Latina consolidaram sua independência e estruturaram seus governos e nações, liderados por figuras como Simón Bolívar.
The Insolvency and Bankruptcy Code, 2016 (Code) came into operation w.e.f 28th May, 2016.
It seeks to consolidate the existing framework by by creating a single law for Insolvency and Bankruptcy.
Insolvency is when an individual, corporation, or other organization cannot meet its financial obligations for paying debts as they are due.
Insolvency can occur when certain things happen, some of which may include: poor cash management, increase in cash expenses, or decrease in cash flow.
The document discusses insolvency laws in the United Arab Emirates (UAE). It outlines the key pieces of legislation governing insolvency, including limitations of the current framework. The importance of developed insolvency laws for protecting creditors and facilitating investment is highlighted. Main drawbacks of the UAE's existing insolvency system include limited applicability, a slow court-based process, and criminal liability for debtors. The evolution of the insolvency market in the UAE is discussed, along with key proposed features and procedures of a new insolvency law aimed at being less punitive and facilitating reorganization over liquidation.
The document discusses flaws in the current UK debt management framework and calls for reforms. It proposes a new model with:
1) A simplified governance structure with single bodies for debt advice regulation, remedies administration, and over-indebtedness strategy.
2) Streamlined debt remedies that encourage early intervention and rationalize formal/court-based options.
3) Comprehensive consumer information to facilitate early resolution.
4) Improved financial education and a centralized debt advice portal to empower consumers.
The proposed reforms aim to produce more consistent, predictable outcomes for both borrowers and creditors through a less complex system.
1) Public borrowing refers to a government legally obligating itself to repay principal and interest to debt holders. Public debt management establishes strategies to raise funds and achieve risk/cost objectives.
2) In the Philippines, the Development Budget Coordination Committee recommends the fiscal program and debt levels. Metrics like debt-to-GDP assess sustainability.
3) As of mid-2019, the Philippines' external debt maturity was mostly medium-long term. Public sector debt increased while private sector debt composition adjusted. Debt was largely dollar- and yen-denominated from major creditors like Japan.
What is Corporate Debt Restructuring, how can it be done and what are the rules and guidelines for CDR? Read this Research Report from Resurgent India to know everything about Corporate Debt Restructuring.
The Indian Space Research Organization conducted a successful maiden test flight of its Reusable Launch Vehicle Technology Demonstrator (RLV-TD) at Sriharikota, marking India's entry into the race to develop reusable space vehicles. The RLV-TD flight test was a "baby step" towards developing a fully reusable space launch vehicle. ISRO had sidelined its RLV program in recent years while focusing on other projects, but has renewed interest due to private companies like SpaceX developing reusable rockets. The successful test positions ISRO to compete with SpaceX and Blue Origin in developing low-cost reusable launch technologies. The RLV-TD is the first step towards India's Two Stage To Orbit reusable spaceplane.
Financial Sector Responsibility for Human Rights Conduct of Borrowers: What W...Larry Catá Backer
The document discusses the responsibilities of financial institutions for the human rights conduct of their borrowers, using the extractives sector as an example. It provides context on debates around corporate social responsibility in the extractives sector. It then outlines several international norm structures that guide business and human rights conduct, such as the UN Guiding Principles on Business and Human Rights, OECD Guidelines for Multinational Enterprises, and third party standards. The document also examines case studies of financial institutions, including the Norwegian sovereign wealth fund's exclusions of certain companies from its investment portfolio due to human rights or environmental concerns. It concludes by looking at private standards adopted by banks like HSBC for their mining and metals sector clients and policies.
The document proposes establishing a Government Investment Enterprise (GIE) to create a national foreclosure mitigation program. The GIE would hold equity investments in single-family residences to help restore the mortgage market. It would use existing TARP and GSE funds, without requiring new funding. The current foreclosure crisis is prolonged due to inefficiencies in programs like HAMP that often do not find an optimal solution for all parties. The proposed GIE aims to better match borrower ability with holder criteria to find a balanced solution and stabilize the housing market.
The document summarizes the Multilateral Debt Relief Initiative (MDRI), which proposes to cancel debts owed by some of the world's poorest countries to the IMF, World Bank, and African Development Bank. The MDRI builds on previous debt relief efforts like the HIPC initiative. It provides 100% debt relief to countries that have completed the HIPC program in order to help them achieve development goals. While debt relief can increase resources for poor countries, debt is not the main impediment to reducing poverty, and other reforms are also needed. The IMF was the first institution to implement MDRI debt relief for 21 countries totaling $3.67 billion.
This document discusses professional opportunities available under India's Insolvency and Bankruptcy Code (IBC). It notes that the IBC provides a comprehensive framework for insolvency and bankruptcy proceedings for both individuals and companies. Some key professional roles under the IBC include serving as an interim resolution professional, resolution professional, liquidator, bankruptcy trustee, and providing advisory services. The document provides a list of 21 specific professional opportunities and areas of practice under the IBC, such as advising secured creditors, acting as a mediator, drafting legal documents, and assisting with claims filing. It also summarizes some of the major amendments made to the IBC since its enactment to strengthen processes and address emerging issues.
Managing Costs Related to Increasing Banking RegulationCognizant
With banks' regulatory compliance challenges only increasing, they must find ways to reduce the associated legal costs, such as by using legal process services providers with experience in handling Know Your Customer (KYC), eDiscovery, foreign bank organizations, Deferred Prosecution Agreements (DFAs), non-prosecution agreements (NPAs), the Dodd-Frank Act and much more.
This document provides feedback on a student assignment regarding a Sovereign Debt Restructuring Mechanism (SDRM). It discusses the student's strengths in presenting cases for and against an SDRM using insights from international law. If implemented, an SDRM could help resolve debt crises more efficiently than current ad hoc methods. However, there are also challenges to enforcing sovereign debt contracts internationally due to issues with jurisdiction over sovereign assets. The document analyzes examples like Argentina's ongoing debt restructuring to explore legal and institutional aspects of SDRMs.
PPP Reference Guide Version 3 - PPP Framework.pdfssusered96e2
This document discusses public-private partnerships (PPPs) and the importance of establishing a strong PPP framework. It notes that while individual PPPs can be implemented without a formal framework, most successful PPP programs rely on sound policies, processes, institutions and rules to govern how PPPs are identified, developed, procured and managed. The document outlines the typical components of a comprehensive PPP framework, including policies, legal structures, processes, public financial management and oversight arrangements. It emphasizes that a well-designed framework promotes good governance, transparency and value for money in PPP programs.
What Are the Most Common Tactics Used by Debt Collection Agencies in Californ...Cedar Financial
Discover the common tactics employed by debt collection agencies in California to facilitate successful debt recovery. Gain insights into the effective utilization of phone calls, letters, emails, settlement offers, payment plans, legal actions, and skip tracing techniques. Understand the importance of compliance with the Fair Debt Collection Practices Act (FDCPA) regulations during the debt recovery process.
The document summarizes the Managed Funds Association's (MFA) policy highlights and engagement with regulators on financial regulatory reform in the U.S. in 2014. Key areas of focus included tax policy, the Commodity Futures Trading Commission reauthorization, regulating systemic risk, central clearing of derivatives, and implementation of the JOBS Act. The MFA supports principled financial regulatory reform and intends to remain engaged with legislators and regulators on these issues.
The Addis Ababa conference is a follow up of the first conference on FfD (Financial for Development) convened in Monterrey in 2002. 'Monterrey Consensus' introduced six "major action" to the FfD. The second FfD conference in Doha in 2008 added a chapter on new challenges and emerging issues that address the impacts of the financial crisis and climate change.
Acquisory News Chronicle May 2016 - Article on Insolvency and Bankruptcy Code 2016 – A dawn in the era of Credit Market Laws
Latest Corporate News updates- RBI Bank, MCA, SEBI, Tax, DIPP and others
The document discusses the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) and how it amounts to a takeover of the Puerto Rican government. PROMESA establishes a Financial Oversight and Management Board that has authority to approve Puerto Rico's fiscal plans and budgets, make across-the-board spending cuts, and implement its own recommendations over the objections of the Puerto Rican government. The document argues this effectively places control of the Puerto Rican government in the hands of an unelected body, like previous acts imposed by the U.S. on Puerto Rico's government.
Debunking the argument against the protection of Chapter 9 for the Puerto Rico Electric Power Authority. For over 200 years bankruptcy laws in the US have been applied retroactively. PREPA's Trust Agreement has always provided for a voluntary filing of a bankruptcy proceeding, since 1979, when PREPA wa authorized to file. Members of Congress and investors are creating an uproar about the possibility of a Chapter 9 proceeding. Why?
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A Roadmap for Puerto Rico and its Creditors
1. A ROADMAP
FOR PUERTO RICO AND ITS CREDITORS
Maria de los Angeles Trigo
August 2015
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 1
2. The government of Puerto Rico started conducting meetings with representatives from
its creditors to present the Krueger Report. The first meeting publicly announced,
celebrated on 13 July 2015, is part of the country’s attempt to negotiate a moratoria
on the repayment of its debt. The purpose is to implement new measures to promote
economic growth that will enable Puerto Rico issuers to pay their debts in full.
Since Puerto Rico has no recourse to either Chapter 9 of the US Bankruptcy Code or
its own law, it must negotiate with its creditors without any pre-established process or
framework.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 2
3. Under the circumstances in which Puerto Rico is forced to conduct its negotiations, it
would be helpful to discuss the roadmap prepared by UNCTAD’s ad hoc Working
Group on a Debt Workout Mechanism.
This roadmap strives to present four “steps that countries can take before and during
debt restructuring” within the context of five principles that should provide guidance in
the negotiation process.
The Working Group is an expert consultation that UNCTAD launched in 2013, where
more than 20 experts, including leading legal scholars, investors, policymakers and
representatives of civil society, participated in the design of the roadmap.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 3
5. “The Roadmap and Guide for Sovereign Debt Workouts includes recommendations to
improve the coherence, fairness and efficiency of current sovereign debt restructuring
processes.”
In this presentation I’ll consider:
•the principles that should govern sovereign debt workouts,
•what are the steps countries can take before and during debt restructuring,
•how they apply to Puerto Rico.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 5
7. The Roadmap and Guide identifies five principles to help interpret the legal rules
involved in a restructuring process, and to help fill in loopholes in the legal rules. These
principles are:
Legitimacy — the legal regime’s properties make it acceptable to the subjects of its
rules: “the good reasons why one should follow a specific rule or regime.” Factors now
considered as part of this principle of legitimacy are inclusive decision-making, and
the respect for human rights and the rule of law.
Transparency — the information about the exercise of public authority is available to
the public or, at least, to interested stakeholders. Transparency would be seen in data
transparency, and in institutional and process transparency. The Roadmap and Guide
notes that any limitations on transparency should follow rules.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 7
8. Impartiality — the absence of bias. The Roadmap and Guide presents three
dimensions of the impartiality principle: institutional, actor, and informational.
Good faith — fairness, honesty, and trustworthiness. “Traditionally, its significance has
been larger in continental legal systems. Nevertheless, in recent decades, good faith
has gained importance for the interpretation of contractual obligations in common law
jurisdictions.” Good faith bears on both the substance and the process of debt
restructuring.
Sustainability — the debt “can be serviced without impairing the social and economic
development of society.” The Roadmap and Guide presents two dimensions:
procedural (debt restructuring starts as soon as debt levels exceed debt service
capacity), and substantive (a standard for the outcome of the restructuring).
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 8
9. The principles proposed build on the 2012 UNCTAD Principles on Promoting
Responsible Sovereign Lending and Borrowing, with “a growing recognition that debt
workouts must safeguard the economic, social, and cultural rights of the affected
population.”
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 9
10. ON THE ROAD …
The Roadmap and Guide proposes
four steps for a sovereign debt
workout, to help both creditors
and debtors face and resolve an
unsustainable debt situation.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 10
11. I. THE DECISION TO RESTRUCTURE
The Working Group believes that one of the main problems with sovereign debt
workouts is the short-termism with which politicians make decisions. Winning an election
beckons and guides, so the decision that debt is unsustainable is neither easy nor
politically expedient. The decision is postponed by accumulating more debt,
weakening even more the country’s finances and making a workout more costly.
Sometimes the government delays because it doesn’t have the information to
determine whether the problem is one of insolvency or of illiquidity. And this delay is
aided by lenders that believe they would be better off with a bailout than with a
restructuring, so they lend additional money to keep the debtor country servicing the
debt.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 11
12. Although the debtor could consider pre-emptive restructurings, which are conducted
before there is a nonpayment or default, it must have an idea of the restructuring
terms that are needed, and of the process that could be followed.
An independent assessment should be made as to the sustainability of the debt, based
on indicators that are relevant for the country and the circumstances. Creditors must be
given the chance to study and comment on the debt sustainability analysis, which could
be at an initial roundtable.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 12
13. II. PREPARING FOR NEGOTIATIONS
Once the debtor country has decided to restructure its debt, it must find, with its
creditors, a framework for the negotiations and workout. The Roadmap and Guide
presents different settings for each of the six different types of debt:
1. bilateral (between governments),
2. multilateral (with international organizations),
3. bank loans,
4. external (foreign law) bonds,
5. domestic bonds,
6. and other credits (usually trade)
Puerto Rico doesn’t have bilateral nor multilateral debt; the vast majority of its debt is
in domestic (Puerto Rico law) bonds. The external bonds outstanding have all been
issued under and subject to NY law.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 13
14. THE ROUNDTABLE
The debtor should convene an initial roundtable to initiate the workout process, discuss
the sustainability analysis, and decide on procedures for the workout. Mediation or
arbitration could be considered. The roundtable should be open to representatives of
all stakeholders. The debtor should propose a negotiating framework, including a
procedure for creditors representation (which could be through investors associations).
The Working Group recommends that debtors “carefully document their efforts to set
up a comprehensive, inclusive, and transparent initial roundtable. If uncooperative
creditors try to enforce their claims through litigation, the documentation might help the
debtor to prove their good faith attempts to reach a consensual workout.”
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 14
15. Although the process should start as an informal negotiation, it is recommended that
the parties agree from the beginning on formal processes if the workout doesn’t move
forward, or if they prefer that a consensus reached informally be supported by a
decision that is legally binding.
Two options could be mediation and arbitration, applying the law governing the debt
documents.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 15
16. THE ADJUSTMENT PROGRAM
As part of a workout, debtors implement a structural adjustment program, which
usually stipulates macroeconomic benchmarks and structural reforms. For the program
to be successful, it must be in the debtor’s best interest, since these programs tend to
require changes on very sensitive social and governmental policies, such as the
provision of public services and privatization programs.
Another risk in the creation of structural programs is how realistic the expectations of
economic growth are and how negative the expenditure costs can be (consider the
devastating result of the overly optimistic projections the IMF made in 2010 on the
Greek economy).
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 16
17. The Roadmap and Guide recommends that the programs:
respect the country’s sovereignty and the domestic decision-making process;
be linked to growth;
protect the poor and vulnerable groups;
not be geared solely towards short-term financing needs nor to the creditor’s
commercial interests;
and respect human rights, especially socio-economic rights.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 17
18. III. NEGOTIATIONS
A major complication of the restructuring of bonds is the high number of bondholders
with different interests and legal constraints. In order to facilitate the restructuring of
these bonds many issuers are either amending the debt documents to include new
collective actions clauses (CACs), or including CACs in the bond documents for new
debt.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 18
19. CACs authorize the amendment of payment terms if a majority (or super-majority) of
bondholders agree. There are three major types of CACs:
•In a majority by series, there must be a vote by bond series, and the
restructuring for each series can proceed if a majority in each series agrees.
•In a two-tier aggregated majority, there must be a majority by series and a
majority of all bonds outstanding in the aggregate.
•A single-tier aggregated majority binds all bondholders if a majority of all
bonds outstanding in the aggregate are in favor of the restructuring.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 19
20. Act 71-2014 had included a two-tier aggregated majority. Act 71-2014 is the law
enacted by Puerto Rico to provide for a bankruptcy-like restructuring of some of its
debt. It was based on Chapter 9 of the US Bankruptcy Code.
The Roadmap and Guide muses that a single-tier aggregated majority may avoid
disparity among creditors. When all creditors have the opportunity to oppose a
restructuring under the same terms, and no one can hold-out, all creditors will receive
the same restructuring outcome. Not so when series can exclude themselves from the
restructuring (just consider what has happened with Argentinian debt under a ruling
from the US District Court in New York, affirmed by the US Circuit Court for the
Second Circuit).
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 20
21. As part of the restructuring, the debtor must take care that the terms agreed with the
creditors do not endanger systematically important economic or fiscal institutions. Also,
trade debt should be exempt from the debt restructuring process: relationships with
vendors should not be affected so that the government can keep operating while the
negotiation is taking place.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 21
22. IV. RESTRUCTURING TERMS
AND POST-RESTRUCTURING ISSUES
The restructuring terms need to “allow[] [the debtor], with high probability, to roll over
or reduce its debt in the foreseeable future without a major correction in the balance
of income and expenditure.” This can be difficult to accomplish, since many
negotiations take a long time because the creditors join throughout the process, which
also increases the cost of the debt restructuring for everyone.
If there are hold-out creditors, it’s even worse, since there is really no conclusion to the
restructuring process. This makes it almost impossible to monitor the debtor’s
compliance with the structural adjustment program in place.
Debt workouts should not be sequential as they create many opportunities for abuse.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 22
23. The Roadmap and Guide recommends that a procedure for the negotiation’s
conclusion be determined at the very beginning, at the initial roundtable. It could
include a deadline by which negotiation must be concluded. If the deadline is not
reached, then mediation or arbitration could be the next step.
To aid in reaching a conclusion to the restructuring, no party should be permitted to
raise an objection to the proposal at voting time that could have been raised before
but wasn’t.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 23
24. As to litigation by hold-outs, the Working Group recommends that good faith in the
purchase of debt and in the negotiation of a debt restructuring be considered in the
concession of remedies for uncooperative and abusive creditors.
To aid in future restructurings, the Working Group recommends to make public “a
complete record of the financial and legal terms of the restructuring, a reasoned
explanation of the treatment accorded to all creditor groups, a description of the
economic reform program undertaken in conjunction with the restructuring, and the
economic, financial, and other assumptions supporting the restructuring.”
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 24
25. … TO PUERTO RICO
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 25
26. Puerto Rico hired an undisputed expert to analyze its economic and fiscal situation,
and the sustainability of its debt, and will meet with representatives of its creditors to
present the Krueger Report and the structural adjustment program.
Undoubtedly Puerto Rico has delayed in recognizing the burden of its debt service
and starting this negotiation. This is explained in part because the government and
most economists believed that the crisis was cyclical and not structural. If you add the
ever-present electoral considerations, this explains the increase in debt issuance in the
last electoral cycles: if it was a cyclical liquidity problem, with more liquidity the
economy would start moving again, government revenues would increase, and the
country would be back on the road.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 26
27. The structural adjustment program (referred to as a long-term fiscal and economic
development plan) is in charge of the Working Group for the Economic Recovery of
Puerto Rico created by Executive Order OE-2015-022. The Group must submit the
plan by 30 August (although it has been announced that it is now expected by mid-
September) and it must include the administrative and legislative proposals necessary
to comply with the plan’s purposes. The legislative bills must be introduced by 1
October.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 27
28. Whether or not all government issuers will try to restructure their debt, Puerto Rico
could start an informal negotiation process and negotiate with creditors a deadline by
which, if no agreement has been reached, an arbitration process could start.
An arbitration could be faster that a judicial process considering the jurisdiction issues
that will be raised if creditors attempt to file in a US Court a claim based on the debt
documents that are subject to and must be interpreted under Puerto Rico law.
Although the debt documents do not have CACs, the obligation to conduct negotiations
in good faith required by Puerto Rico legal doctrine could also help in reaching an
agreement, whether informally or through a formal process of mediation or
arbitration.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 28
29. As to monitoring the compliance with the fiscal and economic development plan, the
Executive Order provides for the creation of a “Fiscal Oversight Board.” This Board
will “guarantee the continuity and honor of the commitments agreed upon by the
Commonwealth during the restructuring process.” Although the Working Group is
responsible for designing and creating the Fiscal Oversight Board, no doubt the result
will consider the input provided by creditors; especially because the Board’s purpose
is at the heart of the creditors’ reasons to agree to a restructuring.
The process initiated by Puerto Rico is just starting, but the Roadmap and Guide
provide an idea of the process that could be followed in negotiating with creditors.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 29
30. EXTRAS
The Krueger Report can be found here.
Two articles discussing Puerto Rico’s lack of a restructuring
framework are here and here.
A description of the UNCTAD’s ad hoc Working Group on a Debt
Workout Mechanism is here.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 30
31. ORIGINALLY PUBLISHED IN LINKEDIN
A Roadmap for Puerto Rico and its Creditors
13 July 2015
This presentation has been revised from the original post.
Maria de los Angeles Trigo, an attorney and certified public accountant, helps clients understand Puerto Rico’s public
finance market. She advises financial institutions, investors, law firms, and government institutions on Puerto Rico debt’s
legal and regulatory framework. Maria de los Angeles worked for 16 years in the Government Development Bank
for Puerto Rico and was the highest-ranking career legal officer as Director of the Compliance Department and
Acting Deputy Director of the Legal Division.
If you would like to receive future posts, just click the follow button in SlideShare and LinkedIn.
A ROADMAP FOR PUERTO RICO AND ITS CREDITORS 31