The Role of International Institutions in Restructuring Sovereign Debts

• Grant number: 13/00410-4
• Support Opportunities: Scholarships in Brazil - Doctorate
• Start date: May 01, 2013
• End date: March 31, 2016
• Field of knowledge: Applied Social Sciences - Law
• Principal Investigator: José Maurício Conti
• Grantee: Gabriel Loretto Lochagin
• Host Institution: Faculdade de Direito (FD). Universidade de São Paulo (USP). São Paulo , SP, Brazil

Abstract

This work aims to investigate the role of international financial institutions in distressed sovereign debt restructuring. Their role is not unanimouly acknowledged as relevant. Possible approaches put forward the hypothesis that what really matters is the suppression of loopholes in contracts between a State and its creditors. On the other hand, there has been given more attention to institutional approaches to the theme, with the scope of giving more importance to international financial institutions in sovereign debt restructurings. The building of a yet too incipient legal-institutional framework is thus emphasized. It is possible that bankruptcy law could give important contributions to enhance the actual situation, eventually through an international bankruptcy court competent to solve conflicts between a State and its creditors. Both contractual and institutional perspectives are important methodological tools, based on the hypothesis that resctructuring sovereign debts recquires a more clear legal framework able to reduce its uncertainties.