Sovereign haircuts / ESP
Spain
4 concluded restructurings, between 1823 and 1882. The earliest default they settle began in 1823. The worst cost creditors 100.0% of the present value of their claim, in 1823. The longest gap between a default and its settlement was 31 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 |
|---|---|---|---|---|---|---|
| 1823 | 1823repudiated | 0 | 100.0% | 100.0% | $2.90B | Meyer, Reinhart and Trebesch (2022) |
| 1823 | 1834 | 11 | 35.0% | 0.0% | $5.55B | Meyer, Reinhart and Trebesch (2022) |
| 1836 | 1867 | 31 | 19.0% | 12.8% | $8.10B | Meyer, Reinhart and Trebesch (2022) |
| 1872 | 1882 | 10 | 38.4% | 54.5% | $21.41B | Meyer, Reinhart and Trebesch (2022) |
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
Default spells
| Spell | From | To | Years | Restructurings |
|---|---|---|---|---|
| ESP_1823-1867 | 1823 | 1867 | 45 | 3 |
| ESP_1872-1882 | 1872 | 1882 | 11 | 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
Debt still in default
The Bank of Canada-Bank of England default database records no debt in default for Spain in its latest year.
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