Open figure viewer
Subject
Prospects for vulture fund activity.
Significance
As vulture fund activity expands, sovereign issuers, their legal and financial advisers and multilateral bodies are developing countervailing structures and mechanisms intended to thwart these activities. The UN has revived the idea of creating a sovereign bankruptcy framework, but this initiative lacks the backing of the United States and major EU countries.
Impacts
Argentina, the DRC and Grenada each face ongoing holdout liability in US courts.
Redrafted legal language may forestall some vulture strategies ahead, but older debt often lacks such clauses.
Success in restricting holdouts would relax pressure on debtors to agree better restructuring terms, resulting in fewer holdouts.
Keywords:
International,
INT,
Argentina,
China,
Congo-Kinshasa,
EU,
Grenada,
Peru,
United Nations,
United States,
Congo-Brazzaville,
Ethiopia,
IMF-World Bank,
Kazakhstan,
Mexico,
economy,
banking,
bonds,
capital flows,
debt,
finance,
government,
international law,
judicial,
public sector,
regulation
© Oxford Analytica 2020. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2015
You do not currently have access to this content.
