Curbing ‘Vulture Fund’ Litigation

2018 ◽  
pp. 498-513
Author(s):  
Cephas Lumina
Keyword(s):  
Developing Countries ◽  
Human Rights ◽  
Sovereign Debt ◽  
Legal Framework ◽  
Sovereign Immunity ◽  
Debt Restructuring ◽  
Predatory Behaviour ◽  
International Debt ◽  
Full Face ◽  
The Impact

The lack of an international legal framework for the restructuring of sovereign debt, and the voluntary nature of current international debt restructuring initiatives have created opportunities for predatory private commercial entities—called ‘vulture funds’—to acquire defaulted sovereign debts at substantial discounts, refuse to participate in debt restructurings and aggressively pursue repayment of the full face value of the debt through litigation, often in multiple jurisdictions. This chapter discusses current official initiatives designed to curb vulture fund litigation and proposes a rethink of the doctrine of sovereign immunity as a key measure to curb the predatory behaviour of ‘vulture funds’. It also discusses the impact of the activities of these 'vulture funds’ on the realisation of human rights, particularly in developing countries, as well other consequences for the countries targeted by ‘vulture funds’

Illicit Financial Flows, Sovereign Debt, and Human Rights

2018 ◽  
pp. 317-336
Author(s):  
Cephas Lumina ◽  
Mulesa Lumina
Keyword(s):  
Sustainable Development ◽  
Human Rights ◽  
Sovereign Debt ◽  
Poverty Reduction ◽  
External Debt ◽  
Legal Framework ◽  
Financial Flows ◽  
Illicit Financial Flows ◽  
External Borrowing ◽  
The Impact

In recent years, there has been increasing attention to the problem of illicit financial outflows—broadly defined as funds that are illegally earned, transferred and utilized outside the country of origin in contravention of that country’s relevant legal framework. Illicit financial outflows divert resources away from activities that are essential for poverty reduction, sustainable development and the realisation of all human rights. They also contribute to the accumulation of external debt as governments that lack domestic resources as a result of these flows may resort to costly external borrowing. This chapter examines the nature of illicit financial flows, the factors that facilitate them and the measures taken by states, individually and collectively, to tackle them. It also discusses the impact of these flows on the realisation of human rights in the countries of origin and proposes concrete measures by which to curb illicit financial flows.

scholarly journals A Soft Law Mechanism for Sovereign Debt Restructuring Based on the UN Principles

2018 ◽  
pp. 446-457 ◽  
Author(s):  
Martin Guzman ◽  
Joseph E Stiglitz
Keyword(s):  
Human Rights ◽  
United Nations ◽  
Sovereign Debt ◽  
Soft Law ◽  
Sovereign Immunity ◽  
Debt Restructuring ◽  
Private Practices ◽  
The Face ◽  
The United Nations ◽  
Critical Overview

This chapter provides a critical overview of the steps and measures taken by the United Nations and other multilateral organizations and actors to resolve chronic sovereign indebtedness and contrasts these with private practices that distort any multilateral outcomes, chiefly vulture funds and holdout creditors. These practices are further reinforced by the courts of jurisdictions willing to entertain suits against sovereigns, notwithstanding the human rights implications and the existence of debt restructuring processes, as well as the demise of sovereign immunity in the face of such suits.

Legal Protection of Children in Non-International Armed Conflicts in Nigeria

2021 ◽  
pp. 1-27
Author(s):  
Olaitan Oluwaseyi Olusegun
Keyword(s):  
Human Rights ◽  
International Law ◽  
Armed Conflict ◽  
Legal Protection ◽  
Legal Framework ◽  
Armed Conflicts ◽  
Conflict Situations ◽  
Legal Frameworks ◽  
The Impact ◽  
Domestic Law

Abstract Armed conflicts are characterised by violence and human rights violations with various implications on the citizens, economy and development of nations. The impact is however more pronounced with life-long consequences on children, the most vulnerable members of the society. This article examines the impact of non-international armed conflicts on children in Nigeria and identifies the laws for the protection of children against armed conflicts, both in international law and Nigeria’s domestic law. It also addresses the challenges involved in the protection of children in armed conflict situations in Nigeria. The study found that legal efforts to protect children have not been given sufficient attention in Nigeria. This is mostly due to various challenges including the fragmentation of legal framework and the refusal to domesticate relevant treaties. It is thus recommended that these challenges be addressed through the implementation of effective legal frameworks.

Restructuring Euro Area Sovereign Debt: Have the Options Narrowed?

2020 ◽  
Vol 6 (1) ◽  
pp. 125-147
Author(s):  
W Mark C Weidemaier
Keyword(s):  
Human Rights ◽  
Euro Area ◽  
Sovereign Debt ◽  
Debt Relief ◽  
European Convention ◽  
Debt Restructuring ◽  
European Stability Mechanism ◽  
Local Law ◽  
The Law ◽  
Legal Constraints

ABSTRACT This article examines the intersection between two key attributes of sovereign debt governance in the Euro Area. First, sovereigns mostly issue bonds governed by their own law. This ‘local law advantage’ should make debt restructuring comparatively easy, as the sovereign can change the law to reduce its debt. The second attribute is the so-called ‘Euro CAC’, which is a contract-based restructuring mechanism mandated by the Treaty Establishing the European Stability Mechanism (the ESM Treaty). The Euro CAC lets a bondholder supermajority approve a restructuring and bind dissenters. Since 2013, nearly all Euro Area sovereign debt has included the clause. Many believe the ESM Treaty requires governments to use the Euro CAC to restructure. But if so, the Treaty is a suicide pact, for the design of the Euro CAC is flawed. In a meaningful subset of cases, the clause will not provide adequate debt relief. This article makes two primary contributions. First, using an Italian restructuring as an example, it explains why the ESM Treaty does not, in fact, require the use of the Euro CAC. Second, it examines the legal constraints—the most pertinent of which derive from the European Convention on Human Rights—that do restrict the use of local-law advantage.

Sovereign Debt Restructuring Proposals: A Comparative Look

2003 ◽  
Vol 17 (2) ◽  
pp. 26-33 ◽  
Author(s):  
Thomas I. Palley
Keyword(s):  
Developing Countries ◽  
Economic Efficiency ◽  
Sovereign Debt ◽  
Procedural Fairness ◽  
Debt Restructuring

A range of different solutions, as the contributions to this roundtable show, has been proposed regarding the problem of sovereign borrower insolvency. Two prominent factors need to be taken into account in assessing the merits of each proposal: its impact on economic efficiency, in particular on the supply and price of credit for developing countries, and its regard for considerations of justice and procedural fairness.

Sovereign Immunity, Insolvent States and Private Bondholders: Recent National and International Case Law

2012 ◽  
Vol 11 (3) ◽  
pp. 525-554
Author(s):  
Lorenza Mola
Keyword(s):  
Sovereign Debt ◽  
Foreign Debt ◽  
Case Law ◽  
Recent Case ◽  
Sovereign Immunity ◽  
Debt Restructuring ◽  
National Courts ◽  
Foreign State ◽  
Outstanding Debt

Abstract This article deals with issues of sovereign immunity from foreign jurisdiction and enforcement, with respect to attempts by private bondholders to recover judicially their credit against a foreign State defaulting on its sovereign debt. It seeks to clarify these issues also in the broader context of cases where a foreign State relies on its insolvency situation as a plea to escape from recovery actions brought by private creditors on the basis of State contracts. In the case where the bonds may qualify as an “investment” under the relevant investment treaties, ICSID and other investor-State tribunals’ awards and their follow-up become relevant too, as shown in the Argentinian crisis and its moratorium on foreign debt. The article reviews recent case law issued by national courts where creditors have brought a claim or tried to have their judgment enforced. In the light of this, it critically highlights the recent bondholders’ practice of refusing the offer made by the ‘insolvent’ State under its debt restructuring plan while seeking to recover their outstanding debt through judicial means.

scholarly journals THE IMPACT OF PHARMACEUTICAL INDUSTRY ON HUMAN RIGHTS

2019 ◽  
Vol 1 (2) ◽  
pp. 90-98
Author(s):  
Shagufta Kanwal ◽  
Keyword(s):  
Developing Countries ◽  
Human Rights ◽  
Pharmaceutical Industry ◽  
Health Sector ◽  
Essential Medicine ◽  
Vital Role ◽  
Focal Points ◽  
Pharmaceutical Industries ◽  
The Impact ◽  
Doha Declaration

Pharmaceutical industry and human rights are opposing each other and having conflict at each point relating to access to essential medicine in developing countries. At this point of research some focal points of discord and contestation from the both sectors are tried to explain. The views from pharmaceutical industry can be explained in the form of official’s submission during negotiation surrounding the Doha Declaration and the decision that were taken after the Doha Declaration. The industry’s views can also be supported by the others who paid their vital role to support the pharmaceutical industries by their writings and morally as well. The main argument given from the pharmaceutical industry was stating that patent is not creating any kind of obstacle creating any obstacle to access essential medicine in developing countries. Actually, they try to state that there were health care issues to the citizens of the developing nations before the IP protection is given to the pharmaceutical industries. So, it can be said that the progress in the field of pharmaceutical industry in the developing countries have nothing to do with IP system and the innovation in the pharmacy cannot be achieved by undermining the IP. Most of the problems in the health sector in not related to the patent system in developing countries.

scholarly journals Konvencijas par uzņēmējdarbību un cilvēktiesībām nepieciešamība

2021 ◽  
pp. 97-103
Author(s):  
Mārtiņš Birģelis ◽  
Keyword(s):  
Human Rights ◽  
Working Group ◽  
Transnational Corporations ◽  
Legal Framework ◽  
International Treaty ◽  
Business And Human Rights ◽  
Human Rights Council ◽  
The Impact

The current legal framework does not properly address the impact that transna­tional corporations have on human rights. In 2014, the UN Human Rights Council established an open-ended intergovernmental working group with a mandate to elaborate an international legally binding instrument to regulate the activities of transnational corporations and other business enter­prises. Yet this decision was strongly contested. This article outlines the main arguments for desirability of an international treaty on business and human rights and provides a response to some of the most common objections raised against the development of such legally binding instrument.

Sign in / Sign up

Export Citation Format

Share Document