Sovereign Debt Restructuring and the Law: The Holdout Creditor Problem in Argentina and Greece

The book sheds light on the holdout creditor problem in sovereign debt restructuring, analyzing the Argentine restructurings of 2005 and 2010 and the 2012 Greek private sector involvement. It highlights the different approaches judges and arbitrators have adopted when dealing with holdout creditors, ranging from denial of contractual right to repayment on human rights grounds to leveraging the international financial infrastructure. It also advances a new genealogy of holdouts, distinguishing between official and private sector holdouts and discussing how the proliferation of new types of uncooperative creditors may affect the sovereign debt architecture.

Format: Paperback / softback
Length: 224 pages
Publication date: 04 January 2023
Publisher: Taylor & Francis Ltd

The book delves into the intricate legal conundrum surrounding sovereign debt restructuring, specifically focusing on the issue of holdout creditors. In the absence of an international bankruptcy regime for sovereigns, holdout creditors have the potential to delay or even obstruct the efficient resolution of sovereign debt crises by leveraging contractual provisions and, in an increasing number of cases, pursuing debt claims against the sovereign in courts or international tribunals.

After providing an introduction to sovereign debt and its restructuring, the book offers a comprehensive analysis of the holdout creditor problem in the context of the two largest sovereign debt restructuring operations in history: the Argentine restructurings of 2005 and 2010 and the 2012 Greek private sector involvement. By examining numerous lawsuits and arbitral proceedings initiated against Argentina and Greece across a dozen different jurisdictions, the book distills the organizing principles for ongoing and future cases of sovereign debt restructuring and litigation. It highlights the diverse approaches judges and arbitrators have taken when dealing with holdout creditors, ranging from denying their contractual right to repayment on human rights grounds to leveraging the international financial infrastructure to coerce governments into meeting holdouts' demands.

To achieve this, the book zooms in on the role of governing law in sovereign debt restructurings, revisits the contemporary view on sovereign immunity from suit and enforcement in the international debt context, and examines how creditor rights are balanced with the sovereign's interest in achieving debt sustainability. Finally, it advances a novel genealogy of holdouts, distinguishing between official and private sector holdouts and discussing their implications for the future of sovereign debt restructuring.

In conclusion, the book sheds valuable light on the critical legal challenges posed by holdout creditors in sovereign debt restructuring. By providing a comprehensive analysis of historical cases and legal developments, it offers insights into the strategies employed by creditors and governments to navigate the complex terrain of sovereign debt crises. It is a valuable resource for scholars, policymakers, and practitioners interested in understanding the dynamics of sovereign debt restructuring and the role of law in shaping its outcomes.

Weight: 444g
Dimension: 234 x 156 (mm)
ISBN-13: 9781032422367