Abstract
This chapter examines the framework of legal ideas and practices governing sovereign debt, notably default and debt restructuring. It looks at their basis in social contract theory with reference to Thomas Hobbes, John Locke, and Immanuel Kant. Particular attention is paid to the evolution of thought about property rights and about sovereign immunity, with reference to US and European case law. The chapter also looks at attempts to develop a framework of international law with reference to the ICSID Convention and bilateral investment treaties and to the attempts of the IMF and other international bodies to embed the notion of fairness in debt restructuring. The chapter then addresses the role of the EU and the role of soft law. It examines the use of the ‘bail-in’ of creditors and of collective-action clauses to hedge creditor power. The chapter closes by exploring some of the paradoxes of power revealed by an examination of law.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
