Eric
Tousaint’s study of the odious debt doctrine
by
Eric Toussaint
Part
3 - In Sack’s view, the rights of private creditors should override
those of the nation
Nicolas
Politis pointed out in his introduction that “former doctrines
had lost sight of the fact that the obligation of successor States,
as well as that of the original borrower, belongs to the creditors
and not to their nation.”
Thus Sack
considered private creditors’ interests to take precedence over
those of the nation. The work Sack devoted himself to, aimed to
convince the international community that there was a need for a code
and international legal structures enabling a better guarantee of
private creditors’ rights before the State. (p. XIV)
On this
crucial matter, Sack’s orientation contrasts with that of other
jurists, both in the 19th century and in his own era. For Luis Drago
(Argentina), Carlos Calvo (Uruguay)|, and Gustave Rolin (Belgium),
the idea is to protect debtor States against abuse from private
creditors, often backed by their own States. At the time, private
creditors were mainly banks and other institutions or private
individuals residing in Great Britain, France, the USA or even
Germany, enjoying the support of their governments, which did not
hesitate to use gunboat diplomacy to recover debt.
Source
and references:
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