Argentine Necessity Case

Abstract

1State responsibility — Necessity — Whether part of customary international law — Effect of a declaration of necessity on private contracts — Economic necessity based on a State’s inability to pay — Temporary suspension of payments on sovereign bonds — Effect in relations between a State and a private individual under private law — International Law Commission Articles on State Responsibility, Article 25 — Whether declaratory of customary international lawEconomics, trade and finance — Sovereign debt — Foreign currency bonds — State suspending payments in foreign currency due to economic crisis — Whether justified by defence of necessity — The law of the Federal Republic of Germany