MANAGING SOVEREIGN DEBT IN THE CONTEXT OF NEW CHALLENGES.

The events that happened in Greece in recent weeks - and not only - showed the world that sovereign risk is present in today's global economy. Sovereign debt crises - which occur when an indebted state is no longer able to honor its commitments, have multiplied lately, but they should not be seen as a new phenomenon - the economic history offers numerous examples of such episodes. So, the State can default on its debt, with all the consequences that follow. In some circumstances, this near "bankruptcy" of one or more states may threaten the very stability of the international financial system and the development of the global economy, due to losses sustained by lenders. The real economic life shows that solutions to prevent over-indebtedness or getting out of this state can be identified only through a complex analysis, based on the entire system of financial and economic indicators, as the limits (thresholds) are highly mobile (and relative) from a country (or stage) to another, and from one organization to another. Managing sovereign risk in the current context represents a real challenge. [ABSTRACT FROM AUTHOR]