What is it about?
When should a government be obligated to repay its debt and when not? Could internationally agreed principles warn creditors when they should rethink making specific loans to specific governments?
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Why is it important?
Governments are obligated to make timely interest and principal repayments on their debt and courts will enforce the obligation, as we saw in Argentina and other cases of "vulture funds". Bond and loan contracts could specify exceptions or provide triggers for temporary postponement, but they don't (so far).
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This page is a summary of: A Role for Legitimacy in Sovereign Debt: A Review Essay on Odette Lienau, Rethinking Sovereign Debt, 2014, Accounting Economics and Law - A Convivium, December 2016, De Gruyter,
DOI: 10.1515/ael-2015-0017.
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