Government Securities Market

Investment level
Speculative level
Positive
Stable
Negative
Developing

CRISIS 2010 IN THE WORLD

The European debt crisis, or the sovereign debt crisis in a number of European countries, is a debt crisis that in 2010 first engulfed the peripheral countries of the European Union (Greece, Ireland), and then spread to almost the entire euro area. The source of the crisis is the crisis of the government bond market in Greece in the fall of 2009. For some eurozone countries, it has become difficult or impossible to refinance public debt without bailouts.

Sovereign debt

As an economic category, sovereign debt is equal to public debt - this is a set of economic relations that arise between the state represented by authorities, on the one hand, and legal entities and individuals, foreign states, international financial organizations, on the other hand, where the state is a borrower and guarantor

Sovereign debt restructuring

When a government has debt service problems, it may undertake a procedure known as sovereign debt restructuring. The restructuring procedure involves adjusting the timing of debt repayment. At the same time, creditors usually have a choice to agree or not to such conditions. If they do not agree, the government will declare a sovereign default. A restructuring can give the government more favorable terms that allow it to reschedule interest payments, reduce debt, and get its finances in order.

Sovereign immunity

Sovereign immunity gives the government protection that a company or individual cannot get. This immunity makes it virtually impossible to sue or seize the assets of a government that has defaulted. It should be noted that sovereign immunity is used only in exceptional circumstances, since any government is interested in servicing its debt obligations as conscientiously as possible in order to prevent a country's credit rating from being downgraded. Otherwise, the downgrading of the credit rating will make it difficult or even impossible to find new creditors.