Dear Colleagues and friends,
In response to the suggestion from the list manager to inform you of the UNCTAD special online essay on " Global and systemic implications of United States Supreme Court rulings in favour of hedge funds over Argentina on 2001 defaulted bonds", I would like to share with you the link to the piece:
http://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=783&Sitemap_x0020_Taxonomy=UNCTAD%20Home
The piece highlights the global and systemic implications of the recent United States Supreme Court rulings in favour of hedge funds over Argentina on 2001 defaulted bonds. The rulings have removed financial incentives for creditors to participate in orderly debt workouts and will make future debt restructuring even more difficult. Moreover, obliging third-party financial institutions to provide information about assets of sovereign borrowers world wide and not to transfer payments to creditors participated in debt restructuring before holdout creditors getting paid will have a significant impact on the international financial system as the enforcement of debt contracts for the creditors would be becoming part of the service obligations of financial service providers involved in debt restructurings. Meanwhile, the erosion of sovereign immunity is also a concern.
Best regards.
Yuefen LI
Head Debt and Development Finance Branch
United Nations Conference on Trade and Development
UNCTAD, Switzerland
yuefen.li@unctad.org
In response to the suggestion from the list manager to inform you of the UNCTAD special online essay on " Global and systemic implications of United States Supreme Court rulings in favour of hedge funds over Argentina on 2001 defaulted bonds", I would like to share with you the link to the piece:
http://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=783&Sitemap_x0020_Taxonomy=UNCTAD%20Home
The piece highlights the global and systemic implications of the recent United States Supreme Court rulings in favour of hedge funds over Argentina on 2001 defaulted bonds. The rulings have removed financial incentives for creditors to participate in orderly debt workouts and will make future debt restructuring even more difficult. Moreover, obliging third-party financial institutions to provide information about assets of sovereign borrowers world wide and not to transfer payments to creditors participated in debt restructuring before holdout creditors getting paid will have a significant impact on the international financial system as the enforcement of debt contracts for the creditors would be becoming part of the service obligations of financial service providers involved in debt restructurings. Meanwhile, the erosion of sovereign immunity is also a concern.
Best regards.
Yuefen LI
Head Debt and Development Finance Branch
United Nations Conference on Trade and Development
UNCTAD, Switzerland
yuefen.li@unctad.org
