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Sovereign Debt Restructuring

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작성자 Ashly
댓글 0건 조회 17회 작성일 24-08-03 19:05

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Not like people and corporations, countries indebted beyond their skill to pay can not use bankruptcy legal guidelines to restructure unsustainable debt. The United Nations and the Worldwide Monetary Fund have attempted to suggest treaties to enable that debt restructuring, but the political difficulties of reaching a worldwide consensus have stymied their efforts. This article argues that a model-legislation method to restructuring unsustainable sovereign debt needs to be feasible and efficient because the vast majority of sovereign debt contracts are governed by the laws of both the debtor-state or two other jurisdictions. These jurisdictions individually may enact a mannequin legislation to offer struggling nations an actual prospect of equitably restructuring their debt to sustainable levels. By enabling such debt restructuring, that enactment would also help to foster the norms required to facilitate the event of international treaties.


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