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Full-Text Articles in Law
Sovereign Debt Reform And The Best Interest Of Creditors, William W. Bratton, G. Mitu Gulati
Sovereign Debt Reform And The Best Interest Of Creditors, William W. Bratton, G. Mitu Gulati
Vanderbilt Law Review
This Article is about boilerplate language located at the back of contracts drafted by the world's largest law firms. The clauses in question are process provisions that regulate the amendment of sovereign debt contracts. These paragraphs have been drafted and redrafted by generations of corporate lawyers, yet they have changed little in their broad outlines in more than a century of use. Now they take center stage in the global financial arena, where they govern billions of dollars (and pounds, euros, and yen) of sovereign debt in default and billions more in imminent risk of default. Officials, academics, and even …
Domestic And External Debt: The Doomed Quest For Equal Treatment, Anna Gelpern, Brad Setser
Domestic And External Debt: The Doomed Quest For Equal Treatment, Anna Gelpern, Brad Setser
Georgetown Law Faculty Publications and Other Works
Until recently, governments borrowed from domestic residents and foreign investors using very different instruments. Residents bought "domestic debt" - paper denominated in local currency and governed by domestic law. Foreign investors preferred "external debt", which offered foreign currency and foreign law. Because there was virtually no overlap between resident and nonresident holdings, it mattered little that lawyers and economists defined domestic and external debt differently: lawyers focused on features such as governing law and jurisdiction, economists on the holder's residence and currency of denomination. The legal and economic definitions of domestic and external debt were effectively bundled: "domestic debt" meant …