Human Rights due diligence by Corporate Creditors in Sovereign Debt Restructurings – A Great Missing Link Juan Pablo Bohoslavsky, Francisco Cantamutto and Lucas Castiglioni

This article shows that private lenders are bound by human rights law, meaning that, when dealing with States in debt distress, lenders should undertake human rights due diligence to determine and agree to a debt relief that is sensitive to the socio-economic situation of the country in question. Yet, based on aggregated evidence of sovereign debt restructurings that took place worldwide between 2007-2020, and by the specific case of Argentina’s latest debt restructurings, reality shows that social variables linked to economic and social human rights, have not been regularly considered when deciding on haircuts for borrowing countries in debt distress.

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(This article was published online by Cambridge University Press on 14 August 2023)