Module 9: Legal aspects of External Debt and External Borrowing

Governments borrow in the international markets all the time. Bonds are issued, loans are contracted, guarantees are given. For that, the financial mechanics tends to be standardized and easy to replicate---that's how markets like it. And yet, behind each transaction involving a sovereign there is a country-specific legal structure to authorize officials to act on behalf of the nation. What is that structure? How clear, efficient, effective, and transparent is it? What happens when loans are signed without authorization or by someone without authorization? What happens when those loans are not recorded or disclosed properly? What is "properly"? What are the best legal and contractual principles and practices to borrow for the State or to renegotiate debts on its behalf? At core, there are issues of protection, liability, and accountability for the civil service when it interacts with the financial industry.