TY  - UNPD
A1  - Hallak, Issam
T1  - Courts and sovereign eurobonds : credibility of the judicial enforcement of repayment
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2003,34
N2  - While focusing on the protection of distressed sovereigns, the current debate intended to reform the International Financial Architecture has hardly addressed the protection of creditors rights that varies among laws. I suspect however that this constitutes an essential determinant of the success of suggested solutions, especially under the contractual approach. Based on a sample of bonds issued by developing countries states in the period, January 1987 to December 1997, I find that, for given contract characteristics (e.g. listing markets and currency), the governing law is selected according to its ability to enforce repayment. However, although the New York law seems looser and incur larger enforcement costs than the England&Wales law, the former permits equivalent yearly credit amounts. I interpret this as a consequence of the existence of a larger set of valuable assets (e.g. trade) in the US that constitute implicit securities. My findings yield important implications for the reforms. In particular, provided that there exists a seemingly equivalent enforcement credibility between England and New York laws, the prompt implementation of the contractual approach solution should constitute a valuable first step toward efficient sovereign debt markets. October 2003.
T3  - CFS working paper series - 2003, 34 
KW  - Law and Finance
KW  - Sovereign Debt Restructuring Mechanism
KW  - Collective Action Clause
KW  - Bankruptcy
KW  - Creditor Rights Protection
KW  - Entwicklungsländer
KW  - Gläubigerschutz
KW  - Auslandskredit
KW  - Finanzierung
KW  - Länderrating
KW  - Länderrisiko
KW  - Justiz
KW  - Justizverwaltung
KW  - Euromarkt
KW  - Schätzung
KW  - Low-income Countries
Y1  - 2003
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/4455
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-10397
IS  - October 2003
ER  -