Applying the Rule of Law to Resolve Debt Default

January 3, 2014

Featuring Elena Duggar,Group Credit Officer for Sovereign Risk, Moody’s Investor Service; Julian Ku, Professor of Law, Maurice A. Deane School of Law, Hofstra University; Arturo Porzecanski, Distinguished Economist in Residence, School of International Service, American University; and Richard Samp, Chief Counsel, Washington Legal Foundation; moderated by Juan Carlos Hidalgo, Policy Analyst on Latin America, Center for Global Liberty and Prosperity, Cato Institute.

In 2001, Argentina defaulted on $81 billion of debt — the largest sovereign default in history. While years later most of its creditors settled to swap their old bonds with heavily discounted new bonds, a group of holdout creditors challenged Argentina in the courts. In October 2012, the U.S. Court of Appeals for the Second Circuit sided with plaintiffs to rule that Argentina must treat all its creditors equally and pay owners of defaulted bonds that were issued under New York law. As the long standoff nears judicial resolution, a distinguished panel of experts will discuss the significant implications of this case for the protection of creditor rights, future debt restructuring processes, and emerging markets.

Video produced by Blair Gwaltney.

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