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Centre for Commercial Law Studies

Should private sector debt relief be part of the Exit Strategy?

Professor Rosa Lastra and Professor Rodrigo Olivares-Caminal took part in an online Private Debt Workshop

19 May 2020

Professor Rosa Lastra, Sir John Lubbock Chair in Banking Law, and Rodrigo Olivares-Caminal, Professor of Banking and Finance Law, at Queen Mary University of London was part of an online panel event discussing 'Should private sector debt relief be part of the Exit Strategy?'.

Is there a case for the UK to introduce a debt reduction strategy? This may be through debt cancellation (forgiveness), debt to equity conversion or even inflation. How might this be delivered in practice? Presumably there would be consequences for creditors, such as banks and insurance companies. What might be the medium-term economic consequences in terms of inequality, investment and productivity? This maybe an opportunity to move towards more equity finance. Should this approach be the part of the Government’s Exit Strategy?

Other members of the panel included Franklin Allen, Imperial College London; Alexander Douglas, St Andrews University and Katharina Pistor, Columbia University.

A recordings of the panel event are available on the Rebuilding Macroeconomics website.