Evaluating Reform Proposals in Sovereign Debt Restructuring: A Path Towards Resilience and Fairness

This article discusses proposals for revamping the framework governing sovereign debt restructurings (SDRs). It outlines three primary approaches: the centralised statutory approach, the decentralised contractual approach, and the model law approach. The article evaluates these proposals to determine whether a harmonised approach through an international law treaty is both desirable and feasible for SDRs, or if an ad hoc and pluralist approach under the existing system is more advantageous. It favours the model law approach as the most promising for developing a comprehensive SDR governance framework. The article also offers evaluative criteria for examining various proposals and suggests potential solutions to unresolved issues.