COC

sovereign debt restructuring

Center of Concern joins filing in precedent-setting sovereign debt trial (March 2014)

Rethinking Bretton Woods | Fri, Mar 21, 2014

Center of Concern joins filing in precedent-setting sovereign debt trial (March 2014)

 

Center of Concern joins Jubilee USA Network and 75 other religious and development groups in filing an Amicus (friend-of-the-court) brief with the US Supreme Court in the famed case between Argentina and NML Capital. Jubilee decided to join as an amicus in this case because the precedent the case may set will impact poor countries in financial distress and allow a small group of hedge funds to target debt relief assets with consequences on vulnerable populations everywhere in the world.

 

Towards a lasting solution to sovereign debt problems (November 2012)

Rethinking Bretton Woods | Mon, Nov 12, 2012

Towards a lasting solution to sovereign debt problems (November 2012)

Following the global financial crisis, low-, middle- and high-income countries are seeing increased levels of sovereign debt. Today no international mechanism exists to deal comprehensively and effectively with sovereign debt problems. A lasting solution requires an independent debt workout mechanism.

CIDSE joins a number of large debt advocacy networks to call for a lasting solution to sovereign debt issues.

 

Investment agreements blocking sovereign debt restructuring measures, says study (May 2009)

Rethinking Bretton Woods | Tue, May 19, 2009

Investment agreements blocking sovereign debt restructuring measures, says study (May 2009)

Center of Concern staff Aldo Caliari authors a study recently published by UNCTAD, "Risks Associated with Trends in the Treatment of Sovereign Debt in Bilateral Trade and Investment Treaties." The study, originally submitted at an UNCTAD consultation held in 2005, argues that in its  most recent bilateral Free Trade Agreements,  the US government has insisted on clauses that would restrict the policy autonomy that countries need to implement sovereign debt restructuring measures.

CAFTA Rules on Sovereign Debt: Cementing the Chains of Debt (May 2005)

Rethinking Bretton Woods | Wed, Apr 13, 2005

CAFTA Rules on Sovereign Debt: Cementing the Chains of Debt (May 2005)

The rules of the Central American Free Trade Agreement (CAFTA) have been widely criticized by debt campaigners for embodying a model of development that is certain to maintain, if not worsen, the debt woes of its developing country members. In spite of this, CAFTA rules that directly govern the treatment of sovereign debt have received relatively little attention and exposure. In fact, by extending to sovereign debt the application of rules elaborated in the context of investment agreements and with the aim of protection of foreign investors (such as Most Favoured Nation, National Treatment and investor-state arbitration), CAFTA spares no effort to close all possible exits to the debt problems of Central American countries.
A Catholic Perspective on Just Debt Solutions. Ethical Principles in Favor of FTAP

Rethinking Bretton Woods | Sat, Apr 19, 2003

A Catholic Perspective on Just Debt Solutions. Ethical Principles in Favor of FTAP

"This paper responds to a statement of the managing director of the IMF that "Ethical principles, principles common to all civilisations are important, yes, essential for an international institution such as the IMF'. It explores what light can be shone on a concrete policy proposal such as the Sovereign Debt Restructuring Mechanism [SDRM] by an ethical analysis which derives from the tradition of Christian reflection embodied in Catholic Social Teaching. It outlines four core insights from this tradition: the universal destination of the goods of the earth; the limits of the market to achieve human ends; the responsibility of governments to work for the common good; and the right of people to participate in decisions that effect them. It argues that this framework gives strong support to the case made by many who argue that the international community should take the opportunity provided by the present discussion on debt crisis mechanisms to go beyond the modest reforms of the SDRM to establish a Fair and Transparent Arbitration Procedure [FTAP] to deal with the problem of recurring international debt crises."

Can There be a Civilized Solution for Debtor Countries? (2002)

Rethinking Bretton Woods | Mon, Jun 24, 2002

Can There be a Civilized Solution for Debtor Countries? (2002)

In most countries, when a company goes insolvent it can file for bankruptcy before an independent judicial body. Thereby it can compel the collectivity of debtors to restructure its debt and continue to grow. However, there is as yet no independent body where debtor countries that face insolvency could initiate a timely process for an orderly debt restructuring.