Lazard Managing Director Pierre Cailleteau joins Debtwire's Laura Gardner on the podcast to discuss domestic debt restructuring as part of sovereign debt negotiations.

Pierre explains the difficulties a government is presented with when it chooses to restructure its domestic debt, the risks it can bring to its economy and why these exercises must be carefully calibrated.

He also goes through three case studies where governments have chosen different paths - Ghana, Sri Lanka and Zambia - and explains their decision-making with regards to domestic debt restructuring.

Pierre discusses the issue of comparability of treatment among different creditor classes and the importance of assessing a creditor group's capacity to absorb losses.

Finally, Pierre talks about the risk of holdouts in a domestic debt restructuring and how these can be tackled.

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