Human Rights and Sovereign Debt Restructurings: Considerations on States’ Legal Arguments in Disputes under Public International Law

Abstract

This article delves into the intersection of sovereign debt restructurings with human rights. It emphasises that, in disputes under international law, States often omit to raise arguments concerning how adverse judgments could potentially harm the economic, social, and cultural rights of their citizens. The article also draws attention to the applicable law approach of some arbitral tribunals and the behaviour of certain holdouts, explaining how they can also contribute to this ecosystem. Ultimately, it is argued that the current hard-law international architecture is neither optimal nor encouraging to robustly link sovereign debt restructurings and human rights.To this end, the article recommends that these processes be guided by certain general principles of law. These principles, considered sources of international law, should be infused with international human rights law nuances. Rather than advocating for an overhaul, suggestions are made to refine the existing international legal framework and better suit human rights in sovereign debt restructurings.