BITs and Bonds: The International Law and Economics of Sovereign Debt
American Journal of International Law, Forthcoming
71 Pages Posted: 31 Aug 2020
Date Written: July 29, 2020
Recent jurisdictional decisions suggest that sovereign debt will be subject to bilateral investment treaties (BITs) for the foreseeable future. This Article demonstrates that applying BITs to sovereign bonds threatens to undermine the core economic function of those treaties by encouraging inefficient State and creditor behavior. It further argues that this dilemma can be resolved through an interpretative approach that leads to the equal treatment of like creditors.
Keywords: International Investment Law, Sovereign Debt, International Arbitration, International Economic Law, Law and Economics
JEL Classification: K33, F30, H63, D72, F65, P45, P48
Suggested Citation: Suggested Citation