Debts unravelled: trust law's unbiased approach to resolving sovereign defaults.

Mak, Charles Ho Wang

Abstract

Sovereign debt defaults have long ignited debate in international finance as debtors, creditors and global entities wrestle with clashing interests. Trust law emerges as a fair and objective method, with trusts formed to manage and disburse funds for creditor advantage. This article investigates trust law's relevance to sovereign debt defaults, presenting case studies and examining its impartiality. The article assesses trust law's pros and cons, proposing its future use as an auxiliary tool alongside debt restructuring. In essence, the article thoroughly scrutinises trust law's function in tackling sovereign debt defaults, highlighting its significance as a just and unbiased mechanism.

Citation

MAK, C.H.W. 2023. Debts unravelled: trust law's unbiased approach to resolving sovereign defaults. Trusts and trustees [online], 29(5), pages 437-443. Available from: https://doi.org/10.1093/tandt/ttad023

• Journal Article Type: Article
• Acceptance Date: Apr 13, 2023
• Online Publication Date: May 17, 2023
• Publication Date: Jun 30, 2023
• Deposit Date: Jun 12, 2023
• Publicly Available Date: May 18, 2025
• Journal: Trusts and trustees
• Print ISSN: 1363-1780
• Electronic ISSN: 1752-2110
• Publisher: Oxford University Press
• Peer Reviewed: Peer Reviewed
• Volume: 29
• Issue: 5
• Pages: 437-443
• DOI: https://doi.org/10.1093/tandt/ttad023
• Keywords: Sovereign debt; Public debt; Government debt; Trusts; Trust law; Debt defaults
• Public URL: https://rgu-repository.worktribe.com/output/1987345