SOGEI website background

A General Overview Of Legal Issues In Debt Management

While the specific regulatory framework in each country reflects its own legal, political and institutional history, there are some general considerations that are applicable to all regulatory frameworks for debt management. This lesson focuses on these general principles. It will also consider the institutional arrangements that facilitate effective debt management and the variety of skills required for an effective debt management operation.
After completing this lesson, the reader should have an understanding of three things. The first is the factors that should be taken into account in designing a regulatory framework for the state’s debt operations. This should help the reader understand some of the legal issues that a sovereign borrower and its external creditors will need to consider in planning debt transactions. Second, the lesson should enhance the reader’s appreciation of the contributions a lawyer can make to the negotiating and structuring of successful debt operations. In this regard, the reader should also develop a better understanding of the knowledge that the lawyer needs if he/she is to perform effectively as a member of the borrower’s team. Third, the lesson offers the reader an insight into the ways in which the law, as expressed through the applicable regulatory framework can influence the planning and implementing of a debt transaction.