In the insolvency of a non grantor debtor, the creditor is an unsecured creditor with an unsecured claim against the non grantor debtor.

Sovereign debt restructurings with private creditors

Where the security right at issue (which secures the debtor's obligation) is granted by the debtor, the term debtor also refers to the grantor.

The law should specify that a security right may secure all types of obligation, including future, conditional and fluctuating obligations.

Participation by debtor firms is voluntary, and requires negotiation between the debtor firm and its creditors.

recognition 67 71 16 Article 19.

(b) Property rights created contractually to secure all types of obligations, including future obligations, fluctuating obligations and obligations described in a generic way

(c) Ensure equitable burden sharing with private creditors

(b) Security rights securing the obligation of the obligor on the negotiable instrument.

(e) Protection of the insolvency estate against the actions of creditors, the debtor itself and the insolvency representative, and where the protective measures apply to secured creditors, the manner in which the economic value of the security interest will be protected during the insolvency proceedings

Emphasizing the important role that private sector creditors play in debt relief and debt sustainability,

(b) The treatment of intra group debts (claims against the debtor company by related group companies) and

It was thus recommended that civil society, as well as debtors and creditors, be involved in the debt resolution process.

In order to make the net debt reduction sufficiently large, however, the HIPC initiative requires deep reductions in the debt servicing owed to bilateral official creditors, which some creditor countries have resisted, and it introduces special processes for reducing the servicing of multilateral debt.

Creditors of a corporation cannot recover debts from a shareholder.

(a) To simplify debt sustainability analysis18 and fully involve debtors in determining sustainability criteria (debtors ownership of debt sustainability analysis)

Table 3 Recent sovereign debt restructurings with private creditors main features

3. Also emphasizes that creditors and debtors must share responsibility for preventing unsustainable debt situations

Right to notify the debtor

4. Emphasizes that creditors and debtors must share responsibility for preventing unsustainable debt situations

Emphasizes that creditors and debtors must share responsibility for preventing unsustainable debt situations

Emphasizes that creditors and debtors must share responsibility for preventing unsustainable debt situations

77. Some formal framework is needed to prevent moral hazard behaviour by debtors and to allow payments suspensions which are part of a process of cooperative and non confrontational debt renegotiation between debtors and creditors.23 There are no formal means for explicitly approving decisions by sovereign debtors to suspend payments.

As a result, these countries have condemned themselves to continued austerity, low growth, and high debt, while diminishing any future incentive for private lenders to impose fiscal discipline on sovereign borrowers. Only by shifting the burden of responsibility back onto private lenders can debtor countries escape this quagmire.

2. The debtor may raise against the assignee any other right of set off, provided that it was available to the debtor at the time notification of the assignment was received by the debtor.

(f) Grantor means a person that creates a security right in one or more of its assets in favour of a secured creditor to secure either its own obligation or that of another person (see debtor).

Orthodoxy has always upheld the sacred rights of the creditor political necessity has frequently demanded relief for the debtor. Which side wins in any situation depends on the extent of debtor distress and the strength of the opposing creditor debtor coalitions.

(3) to set down the scheme for debt disposal or inheritance through negotiating with the creditors

How to Default on Sovereign Debt

Sovereign Debt at Square One

Welcoming also the actions taken by creditor countries within the framework of the Paris Club and by some creditor countries through the cancellation of bilateral debts, and urging all creditor countries to participate in efforts to remedy the external debt and debt servicing problems of developing countries,

Finally, it is important to recognize the contribution that efficient and equitable burden sharing between debtors and creditors can make to alleviating unsustainable debt burdens.

The super priority ranks ahead of administrative creditors.

Both lending and borrowing countries must undertake effective measures to ensure debt forgiveness and debt rescheduling in order to solve that worldwide problem.

The external debt of SSA amounts to roughly 10 per cent of the total debt owed by developing countries to official creditors.

The recent experiences of debt restructurings with private creditors are very diverse.

Most of their debt is owed to official creditors, both bilateral and multilateral.

When a sovereign decides that its foreign debt is unsustainable, the government and its creditors have had to negotiate among themselves about what to do. For sovereign bonds held by other sovereigns, the Paris Club of creditor countries has developed procedures for handling the debt.

First, it aims to ensure that obligations are fairly and regularly met when a debtor becomes financially insolvent. Thus, it seeks to protect the lawful rights of both creditors and debtors.

Defences and rights of set off of the debtor

87. In his view, the external debt problem should be addressed on a case by case basis, taking into account the situation of both debtors and creditors.

Welcoming also the actions taken by creditor countries within the framework of the Paris Club and by some creditor countries through the cancellation of bilateral debts, and urging all creditor countries to participate in efforts to remedy the external debt and debt servicing problems of developing countries,

His delegation appreciated the debt relief measures undertaken by creditor countries within the framework of the Paris Club, and their cancellation and equivalent relief of bilateral official debt.

Debt for nature conversion programmes have also been declining over time, but other debt for development swaps increased in 1997, with focus likely to be shifted in the future to claims held by official creditors.

(q) quot Unliquidated obligation quot shall mean an obligation or that portion of an obligation which is not yet disbursed.