Sovereign Debt Restructuring : The Legal Aspects Involved

The history of sovereign debt lending and borrowing goes back to ancient times. Sovereigns borrow money for reasons similar to individuals. The vital difference between the two however, is one of recovery. Unlike individuals, a sovereign's assets may not be seized and liquidated for recovery of debts. In the absence of an international consensus on how to restructure debt, several techniques and methods have been created and suggested by diverse groups. Many Important changes have ensued and a trend of litigation has also evolved in the past couple of decades. While sovereign debt restructuring has almost always stirred a debate in the realm of economics, certain important legal issues and aspects also deserve to be highlighted