The potential of trust law in sovereign debt restructuring. [Blog post]

Mak, Charles Ho Wang

Abstract

The interplay between sovereign debt defaults and legal frameworks has long been a subject of scholarly discourse and practical concern. Navigating this labyrinthine arena necessitates a rigorous understanding of various legal paradigms, one of which is trust law. In a new article, the author sheds light on the utility of trust law in dealing with sovereign debt defaults. The article delves into the core principles of trust law – impartiality and independence – and evaluates their applicability in reconciling the often-divergent interests of creditors and sovereign debtors. While acknowledging the roles of other legal mechanisms, such as national insolvency laws and contractual agreements, the article posits that trust law offers unique advantages in fostering equitable and just resolutions. Nevertheless, this paradigm is not without its limitations, which also warrant a thoughtful discussion. Ultimately, the article calls for an integrated approach to assess the broader implications of trust law within the financial system, advocating for its potential role in stabilizing global markets and enhancing international relations.

Citation

MAK, C.H.W. 2023. The potential of trust law in sovereign debt restructuring. [Blog post]. Posted on The CLS blue sky blog [online], 29 September 2023. Available from: https://clsbluesky.law.columbia.edu/author/charles-ho-wang-mak/

• Digital Artefact Type: Website Content
• Acceptance Date: Sep 23, 2023
• Online Publication Date: Sep 29, 2023
• Publication Date: Sep 29, 2023
• Deposit Date: Jan 22, 2024
• Publicly Available Date: Jan 22, 2024
• Publisher: Columbia University, Columbia Law School
• Keywords: Sovereign debts; Legal framework; Trust law; Financial systems
• Public URL: https://rgu-repository.worktribe.com/output/2173621
• Publisher URL: https://web.archive.org/web/20231211121504/https://clsbluesky.law.columbia.edu/author/charles-ho-wang-mak/