Sovereign Loan
/ˈsɒvrɪn loʊn/
Definitions
- (n.) A loan extended to a national government, typically in foreign currency, subject to international law and sovereign immunity considerations.
The country secured a sovereign loan to fund its infrastructure projects.
Forms
- sovereign loan
- sovereign loans
Related terms
See also
Commentary
Sovereign loans are distinct from commercial loans due to sovereign immunity and the involvement of international legal principles; drafting often requires clarity on jurisdiction and enforcement.
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.