Sovereign Debt Restructuring
/ˈsɒvrɪn dɛt rɪˈstrʌktʃərɪŋ/
Definitions
- (n.) A legal and financial process whereby a sovereign state renegotiates the terms of its external debt obligations to achieve debt relief or restructuring.
The government initiated sovereign debt restructuring to manage its unsustainable financial obligations.
Forms
- sovereign debt restructuring
Related terms
See also
Commentary
Sovereign debt restructuring involves complex negotiations often influenced by domestic law, international law, and creditor rights; legal drafters should distinguish it from commercial debt restructuring due to sovereign immunity considerations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.