Table of Contents

Two recent liability management episodes – perhaps characterized as “open market” versus “open mouth ” – usefully compare and contrast approaches to sovereign debt restructuring. Belize has just completed an exchange which extended the maturity of its external debt, whereas, as this paper went to press, Ecuador’s new government of President Correa was still considering all options. This paper summarizes the approach taken by each country, and draws conclusions about the likely financial implications and repercussions for policymakers ’ reputations. The paper finishes with an analysis o