A policy paper, published by the International Monetary Fund in June, considers the factors leading to debt restructuring in emerging markets and discusses ways to mitigate negative effects.

Prepared by the IMF's monetary and capital markets department, the paper examines sovereign debt restructurings in emerging markets from 1998–2010. The paper identifies a number of factors that may contribute to a default, including a worsening of the terms of trade, an increase in borrowing costs, recession