Recent court decisions in the United Kingdom regarding the illegality of exit consents, and in the United States regarding pari passu clauses in Argentine sovereign debt, as well as the ongoing Greek debt crisis, have dramatically highlighted the risks of an inadequate legal resolution framework for restructuring unsustainable sovereign debt. Unresolved sovereign debt problems are hurting individual debtor nations and their citizens, as well as their creditors. A sovereign debt default can also pose a serious systemic threat to the international financial system.

https://www.cigionline.org/sites/default/files/pb_no.64.pdf