Sovereign haircuts / DOM
Dominican Republic
8 concluded restructurings, between 1872 and 2005. The earliest default they settle began in 1872. The worst cost creditors 100.0% of the present value of their claim, in 1872. The longest gap between a default and its settlement was 9 years.
Every restructuring
Two measures of the same deals, never combined. The present-value haircut discounts what creditors got against what they were owed; the face-value reduction counts only principal written off.
| Default | Settled | Years to settle | Present-value haircut | Face-value reduction | Debt treated (2020 $) | Source |
|---|---|---|---|---|---|---|
| 1872 | 1872repudiated | 0 | 100.0% | 100.0% | $163M | Meyer, Reinhart and Trebesch (2022) |
| 1892 | 1893 | 1 | 54.0% | 0.0% | $186M | Meyer, Reinhart and Trebesch (2022) |
| 1896 | 1897 | 1 | 32.4% | 0.0% | $367M | Meyer, Reinhart and Trebesch (2022) |
| 1899 | 1908 | 9 | 32.4% | 50.0% | $459M | Meyer, Reinhart and Trebesch (2022) |
| 1931 | 1934 | 3 | 34.5% | 0.0% | $250M | Meyer, Reinhart and Trebesch (2022) |
| 1982 | 1986 | 4 | 49.9% | 0.0% | $1.67B | Cruces and Trebesch (2013) |
| 1987 | 1994 | 7 | 50.5% | 39.7% | $1.75B | Cruces and Trebesch (2013) |
| 2004 | 2005 | 1 | 4.7% | 0.0% | $1.42B | Cruces and Trebesch (2013) |
Source: Meyer, Reinhart & Trebesch (2022), Sovereign Bonds since Waterloo | Cruces & Trebesch (2013), Sovereign Defaults: The Price of Haircuts | Asonuma & Trebesch (2016) Debt treated is the amount restructured, deflated to constant 2020 US dollars in the source file. A negative haircut means the new instruments were worth more than the old claim. Methodology
Bond prices
2 of 8 Dominican Republic restructuring episodes have Waterloo prices during the restructuring interval
price only, never pbid or pask, and shows one line per bond from one year before default to one year after settlement. The author README defines price as “bond price in GBP and USD”; it does not document normalization to face value. Across all 329 haircut episodes, 111 have no Waterloo country-code match and 177 start after Dec 1, 1980. Those two counts overlap. 3 of 8 episodes start after the panel ends. 2 episodes overlap the panel but still have no non-null price observations in that window. 1 episode has prices only in the padded part of the window, outside the restructuring interval.| Bond | Currency | ISIN | Obs. | First | Last |
|---|---|---|---|---|---|
| 5.5% Customs Administration bonds of 1922, due 1942 (1st series) | USD | not recorded | 72 | Jan 1, 1930 | Dec 1, 1935 |
| 5.5% Customs Administration SF Gold of 1926, due 1940 (1st series) | USD | not recorded | 72 | Jan 1, 1930 | Dec 1, 1935 |
| 5.5% Customs Administration SF Gold of 1926, due 1940 (2nd series) | USD | not recorded | 71 | Jan 1, 1930 | Dec 1, 1935 |
waterloo_bonds.price only; pbid and pask are not averaged into it. The author README defines price as “bond price in GBP and USD” and does not document face-value normalization. GBP and USD observations use separate labelled panels and y-axes. Of the 329 episodes in the haircut file, 111 have no Waterloo country-code match and 177 start after 1980-12-01; these counts overlap. Later episodes show an absence message rather than an implied zero.Source: Meyer, Reinhart & Trebesch, Sovereign Bonds since Waterloo (bond-price panel) | Harvard Dataverse, Sovereign Bonds since Waterloo Methodology
Default spells
| Spell | From | To | Years | Restructurings |
|---|---|---|---|---|
| DOM_1872-1872 | 1872 | 1872 | 1 | 1 |
| DOM_1892-1893 | 1892 | 1893 | 2 | 1 |
| DOM_1896-1908 | 1896 | 1908 | 13 | 2 |
| DOM_1931-1934 | 1931 | 1934 | 4 | 1 |
| DOM_1982-1994 | 1982 | 1994 | 13 | 2 |
| DOM_2004-2005 | 2004 | 2005 | 2 | 1 |
Source: Meyer, Reinhart & Trebesch (2022), Sovereign Bonds since Waterloo | Cruces & Trebesch (2013), Sovereign Defaults: The Price of Haircuts | Asonuma & Trebesch (2016) Duration counts both endpoints. The spells table also carries a cumulative-haircut column; it is not published here because it does not reconcile with the per-episode haircuts, see the methodology. Methodology
The Cruces-Trebesch record: a third measure and the discount rate
The Cruces-Trebesch file carries 4 restructurings here, and adds the market haircut (the new instruments against the face value of the old claim, undiscounted) and the exit yield used to do the discounting. The deal label is the file’s own and is finer than the country: it names the instrument class the deal covered. The two files were assembled separately, so a deal here need not line up one-to-one with a row above.
| Deal | Date | Present value | Market | Face value | Exit yield | Structure | Data quality |
|---|---|---|---|---|---|---|---|
| Dom. Rep. | 1986-02-01 | 49.9% | 49.9% | 0.0% | 24.8% | - | 2 / 5 |
| Dom. Rep. | 1994-08-01 | 50.5% | 55.8% | 39.7% | 12.8% | Brady deal | 3 / 5 |
| Dom. Rep. (Bond debt) | 2005-05-01 | 4.7% | 4.1% | 0.0% | 9.5% | bond exchange | 5 / 5 |
| Dom. Rep (Bank debt) | 2005-10-01 | 11.3% | 15.8% | 0.0% | 9.7% | - | 2 / 5 |
Source: Cruces & Trebesch, haircut dataset (2014 update) Data quality is the file's own 1-to-5 index of how well the deal terms are documented. Methodology
Debt still in default
$33.0M across 1 creditor class in 2024. A haircut can only be measured once a restructuring concludes, so any of this that is still being negotiated is by construction absent from the tables above.
| Creditor class | In default, 2024 |
|---|---|
| Other official creditors | $33.0M |
Source: Bank of Canada-Bank of England Sovereign Default Database (CRAG) Bank of Canada terms (attribution). Includes domestic arrears, so it is not comparable with the debt-treated column above. Methodology