Several legal issues arise in debt transactions. Good legislation and legal analysis play a crucial role in the negotiation and implementation of all financial arrangements because, in the final analysis, financial arrangements have important legal implications for both borrowers and lenders. Moreover, in a changing international regulatory environment, there is a need of an even increasing awareness about the legal aspects of debt and financial management. Insufficient understanding in this regard, can imply, in conjunction with other factors, the inability of sovereign borrowers to successfully manage their finances and repay their debts.

In recent years, the regulatory framework has been completed by a macro-prudential perspective, which is intended to mitigate the systemic risk of the financial system as a whole.

Work is also under way to ensure more timely, orderly and effective public debt restructurings that require an appropriate involvement of the private sector.