|
A proposed law would encourage strategic defaults and let countries like Argentina run roughshod over bond investors.
By Robert J. Shapiro *
Argentina’s 2001 sovereign default has sparked controversy and debate in many parts of the world for nearly 14 years. Even so, it’s surprising that the latest battle related to that event should play out in Belgium. Belgian lawmakers are debating a proposed law that, if adopted there and elsewhere, could cripple the market for sovereign bonds issued by developing countries.
The proposal, which could come up for a vote in the finance committee of the Belgian Parliament next week, would limit the amount a so-called vulture creditor could recover on sovereign bonds following a default. The...
|