The Sanctity of Sovereign Loan Contracts and Its Origins in Enforcement Litigation
By James Gathii, February 8, 2012
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This article is the first to view to examine sovereign debt enforcement litigation from the perspective of the sanctity of contracts doctrine. The sanctity of contracts doctrine has become the reigning paradigm underlying sovereign debt enforcement litigation since the mid-1980s. This doctrine provided for strong creditor rights provisions which permitted default to be used as a baseline creditor right, replacing the previous rule providing that renunciation or repudiation of a debt by a sovereign borrower was a precondition for accelerated payment.
