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The right to restructure Sovereign Debt

This article attempts to delineate the scope of a state right to restructure sovereign debt. It begins by tracing the origin of such a right to state sovereignty and then evaluates the limitations imposed upon it through participation in the International Monetary Fund (IMF). Beyond analyzing the legal position with respect to a state right to restructure sovereign debt, the article stresses the potential tensions between the IMF’s policies relating to sovereign debt restructuring and a normative concept of sovereignty. The article concludes by presenting reform proposals able to alleviate these tensions.