Sovereign Creditors Must Not Rewrite the Rules During the Pandemic
If Argentina acceded to the demands of a group of hold-out creditors, it would create a disastrous precedent that would set back by more than a decade the development of the international legal architecture for sovereign debt. More than 70 economists and scholars urge the international community to reject such irresponsible behavior.
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NEW YORK – In the wake of COVID-19, there is an urgent need for sovereign debt restructuring, including debt relief. In the circumstances caused by the pandemic, many countries’ repayment obligations could have devastating social consequences if they are not adjusted. Financial markets face risks of sovereign default.