The Case for Abolishing Sovereign Debtors’ Privileges
ZBB - Zeitschrift für Bankrecht und Bankwirtschaft/ Journal of Banking Law and Banking (JBB) (Forthcoming)
29 Pages Posted: 21 Nov 2012 Last revised: 4 Dec 2012
Date Written: November 20, 2012
Compared to private debtors, sovereign debtors, especially EU-sovereign debtors, enjoy many privileges under European Union law and under national laws. They are, for example, exempt from the prospectus requirement and not subject to the continuous disclosure obligations. The prohibition on market manipulation does not fully apply to states or their agents and the European Commission intends to expand this exemption even further. This article argues against these exemptions and makes the case for the abolition of sovereign debtors' privileges.
Keywords: Sovereign Debt Crisis, Financial Crisis, European Union, Sovereign Debtors, Disclosure, Market Manipulation, Privileges, Exemption, Exception
JEL Classification: G28, H6, K2
Suggested Citation: Suggested Citation