IMF says private bondholders should pitch in during debt crises

Private-sector bondholders may have to share the financial burden when debt-laden countries ask the IMF for help, reports the New York Times.

The IMF is close to finalizing standards that would lay out the conditions that make a country’s debt unsustainable, and when bondholders would have to join taxpayers in bailing out a country.

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The IMF’s proposal would extend the maturity dates for bonds so investors couldn’t flee in times of crisis, says the Times.

The new rules come in the wake of Greece’s bailout and economic overhaul, and more recently Argentina’s standoff with investing hedge funds.

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The staff of Advisor.ca have been covering news for financial advisors since 1998.