Beyond Balancing the Interests of Creditors and Developing States

9 Pages Posted: 22 Feb 2006

See all articles by Anna Gelpern

Anna Gelpern

Georgetown University Law Center

Date Written: 2003


The traditional view of sovereign debt as a relationship between a developing country government and and its foreign private creditors is increasingly out of date. Financial institutions and individuals inside the borrowing countries are are becoming more and more important as creditors to their governments. At the same time, as countries remove restrictions on cross-border capital flows, foreign creditors are participating more actively in domestic law, local-currency debt markets. These developments imply fundamental changes in lending decisions and, where the loan goes bad, in the sovereign debt workout process.

Keywords: sovereign debt, international finance, emerging markets, domestic and external debt, development

JEL Classification: F34, F36, K33, K29

Suggested Citation

Gelpern, Anna, Beyond Balancing the Interests of Creditors and Developing States (2003). Rutgers School of Law-Newark Research Papers No. 018; ASIL Proceedings, 2003. Available at SSRN: or

Anna Gelpern (Contact Author)

Georgetown University Law Center ( email )

600 New Jersey Avenue, NW
Washington, DC 20001
United States

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