Establishing international bankruptcy mechanism


Claim

  1. An international debt arbitration panel should be established to ensure that financial crises and sovereign debt obligations do not place undue burdens on countries and to prevent a liquidity crisis from becoming a solvency crisis. When sovereign debt service threatens the welfare of a country's people, the panel would restructure and/or cancel debts so as to ensure that important social services are not compromised in an effort to meet debt obligations. In a financial crisis, the panel would prevent a liquidity crisis from becoming a solvency crisis by arbitrating an agreement that meets the needs of sovereign debtor and creditor thereby helping reduce the need for bailouts by the international community.


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