Background slide

In the context of sovereign debt restructuring, a "debt-for-equity" swap is an arrangement in which a country exchanges part of its outstanding debt for equity-like interests in national assets. Rather than reducing the total debt amount owed (as with a traditional debt "haircut"), the debtor country offers creditors stakes in specific assets, projects, or revenue-generating sectors (e.g. state-owned enterprises, natural resources such as mining or oil etc.) in exchange for partial debt relief.