Necessity in the Time of Corona

Abstract

Like clockwork, Argentina is once again faced with restructuring its sovereign debt. A quick resolution to the latest episode in this saga is in everyone’s favor, but a certain pandemic gripping the globe has complicated things. Now is not the time to restructure: creditors are at their most tight-fisted, and accurate economic projections are nearly impossible. The necessity doctrine provides a potential avenue for Argentina to defer debt payments and postpone its restructuring until it weathers the COVID-19 crisis.

Keywords: Argentina; necessity doctrine; COVID-19; Articles on State Responsibility; Article 25; pandemic; sovereign debt