Toward a Statutory Approach to Sovereign Debt Restructuring: Lessons from Corporate Bankruptcy Practice Around the World

2003 ◽  
Author(s):  
Patrick Bolton
Author(s):  
Hayk Kupelyants

Chapter 3 examines the international jurisdiction in sovereign debt disputes and particularly the following matters: service of proceedings; the jurisdiction under the Brussels Regulation, the jurisdiction under English national rules; individual standing of beneficial bondholders; class actions. The chapter also examines the issue of pre-emptive strikes in sovereign debt litigation, in other words whether private creditors may initiate legal actions before the conclusion of the sovereign debt restructuring and how courts may constrain such litigation. The chapter argues that the English courts may stay proceedings if they are brought in contravention of the powers of bondholders under majority action clauses. The chapter lastly addresses the issue of whether the majority may modify the bonds after the English court has issued a judgment.


Author(s):  
Andrea Consiglio ◽  
Stavros A. Zenios

AbstractDebt restructuring is one of the policy tools available for resolving sovereign debt crises and, while unorthodox, it is not uncommon. We propose a scenario analysis for debt sustainability and integrate it with scenario optimization for risk management in restructuring sovereign debt. The scenario dynamics of debt-to-GDP ratio are used to define a tail risk measure, termed


Author(s):  
Sean Fleming

States are commonly blamed for wars, called on to apologize, held liable for debts and reparations, bound by treaties, and punished with sanctions. But what does it mean to hold a state responsible as opposed to a government, a nation, or an individual leader? Under what circumstances should we assign responsibility to states rather than individuals? This book demystifies the phenomenon of state responsibility and explains why it is a challenging yet indispensable part of modern politics. Taking Thomas Hobbes' theory of the state as a starting point, the book presents a theory of state responsibility that sheds new light on sovereign debt, historical reparations, treaty obligations, and economic sanctions. Along the way, it overturns longstanding interpretations of Hobbes' political thought, explores how new technologies will alter the practice of state responsibility as we know it, and develops new accounts of political authority, representation, and legitimacy. The book argues that Hobbes' idea of the state offers a far richer and more realistic conception of state responsibility than the theories prevalent today and demonstrates that Hobbes' Leviathan is much more than an anthropomorphic “artificial man.” The book is essential reading for political theorists, scholars of international relations, international lawyers, and philosophers. It recovers a forgotten understanding of state personality in Hobbes' thought and shows how to apply it to the world of imperfect states in which we live.


1999 ◽  
Vol 6 (2) ◽  
pp. 197-207
Author(s):  
Yoram Landskroner ◽  
Jacob Paroush

2013 ◽  
Author(s):  
Kuan-Hui Lee ◽  
Horacio Sapriza ◽  
Yangru Wu

Sound public debt-management policies during sovereign debt distress periods are key to efficiently resolving a debt crisis and regaining market access. In addition to understanding the causes, processes, and outcomes of sovereign debt restructurings, this article analyzes the role of the debt manager along with determinants and strategies to maintain/regain market access. The sovereign’s debt sustainability analysis and determination of loss of market access are two crucial elements in the IMF’s lending decisions to countries in debt distress. Various indicators used in assessing whether the sovereign can tap international capital on a sustained basis are discussed. When a sovereign debt restructuring needs to be undertaken, it is necessary to determine the financial terms of the debt operation. Some key principles in designing sovereign debt restructuring scenarios and ways in securing full-financing of the economic program and regaining market access are presented. We conclude by offering a few best practices on preventing and managing sovereign debt restructurings.


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