The G20 Debt Service Suspension Initiative: What of Commercial Creditors?

(2020) 35(11) Butterworths Journal of International Banking and Financial Law 741

3 Pages Posted: 1 Dec 2021

See all articles by Stephen Connelly

Stephen Connelly

University of London - Birkbeck College

Celine Tan

University of Warwick - School of Law

Karina Patricio Ferreira Lima

School of Law, University of Leeds

Chris Tassis

University of Warwick - School of Law

Date Written: December 1, 2020

Abstract

The Debt Service Suspension Initiative (DSSI) for Poorest Countries provides for a time-bound suspension of debt repayments to public creditors. Commercial creditors, however, are not so bound. Earlier this year there was an initiative to introduce a moratorium on debt service on sovereign bond contracts governed by English law entered into by highly indebted states, which was considered as part of the Corporate Governance and Insolvency Bill 2020 (CIGB). The draft legislation, aimed at freeing up resources for those countries to support health, humanitarian and social and economic measures during the COVID-19 pandemic, was blocked at the last minute. Whilst the proposal did not fit with the UK-focused aims of CIGB 2020, the issues remain and are discussed in this article.

Keywords: DSSI; Sovereign Debt; COVID-19

JEL Classification: K1; K2

Suggested Citation

Connelly, Stephen and Tan, Celine and Patricio Ferreira Lima, Karina and Tassis, Chris, The G20 Debt Service Suspension Initiative: What of Commercial Creditors? (December 1, 2020). (2020) 35(11) Butterworths Journal of International Banking and Financial Law 741, Available at SSRN: https://ssrn.com/abstract=3935389

Stephen Connelly (Contact Author)

University of London - Birkbeck College ( email )

Malet Street
London, WC1E 7HX
United Kingdom

Celine Tan

University of Warwick - School of Law ( email )

Gibbet Hill Road
Coventry CV4 7AL, CV4 7AL
United Kingdom

Karina Patricio Ferreira Lima

School of Law, University of Leeds ( email )

Leeds LS2 9JT
United Kingdom

HOME PAGE: http://https://essl.leeds.ac.uk/law/staff/1333/

Chris Tassis

University of Warwick - School of Law ( email )

Gibbet Hill Road
Coventry CV4 7AL, CV4 7AL
United Kingdom

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