I suggest a clause that reflects that anyone buying a sovereign debt that offers a risk premium that exceeds in x percentage that paid by the deemed safest sovereign, should accept that this debt is in a pre-default status and, as such, should at the moment of renegotiation not have right to have the cake and eat it too, namely the right to present a demand for full repayment of interests and capital. If a debt renegotiation occurs then all excess interest rate collected above the set maximum risk premium level, should automatically apply to amortization of principal.



http://teawithft.blogspot.ca/2014/09/when-discussing-sovereign-debt.html

