# Prague communiqué

- Canonical URL: https://www.gerhardmerk.de/prague-communique
- Post ID: 592486
- Modified: 2023-07-25T21:13:18+00:00
- Language: en

## Definition

At its meeting in Prague in September 2000, the International Monetary and Financial Committee of the International Monetary Fund (IMF) decided that, in the event of a sovereign default, private creditors should henceforth also share the burden. There is to be no more preferential treatment of creditor groups. - The purpose of the regulation is to prevent private lenders from lending to a country that is already facing sovereign default (e.g. Argentina in 2000, Brazil in 2002) in the expectation that the bad debts will be satisfied by others (practically the IMF). - See London procedure, moral hazard, risk enhancement, subjective, debt repayment mechanism, independent, sovereign debt, denied, debt rescheduling clauses, asset levy. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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