IMF Warns New York Debt Law Shift Will Complicate Emerging Market Bond Reworks.

Legislation proposed in New York state to change the way sovereign debt restructurings are carried out after a country defaults has been warned against by the International Monetary Fund (IMF). While the goal of the legislation is to bring more order to the process, the IMF spokesperson stated that certain provisions could introduce uncertainty and negatively impact the timeliness and predictability of the restructuring process. The IMF has not made any formal recommendations on the matter but has backed a contractual approach to debt restructurings. The proposed legislation has sparked a contentious issue between Wall Street and politicians, activists, labor unions, and charities. [Extracted from the article]