Eduardo Borensztein, Ugo Panizza
Sovereign debt is different from private debt because creditors do not have a well defined claim on the sovereign’s assets. The lack of a procedure for enforcing sovereign debt contracts is partly due to the principle of sovereign immunity. However it also relates to the fact that, even when creditors obtain a favorable ruling, they cannot attach assets which are located within the borders of the defaulting country, and in fact have had limited success in going after assets located abroad.
Copy and paste this URL into your WordPress site to embed
Copy and paste this code into your site to embed