How will the UN enforce the results of a debt restructuring process under the Multilateral Sovereign Debt Resolution Mechanism?

Answer

A debt convention encompassing the establishment of a Multilateral Sovereign Debt Resolution Mechanism would be an international treaty that should be ratified by member states and transposed into domestic legislations in all jurisdictions. This transposition should include provisions and principles for an automatic standstill on payments and an automatic stay on creditor litigation, as well as establishing processes for dispute resolution. In this sense, rather than simply enforcing the results of a debt restructuring on private creditors, such domestic legislation would protect borrowing countries from potential lawsuits from uncollaborative creditors or other kinds of disputes.

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