Gouging the Gauchos

The Debtor Prisoner s Dilemma

In debt crises, blame tends to fall on the debtors.

The US is gradually transferring resources from creditors to debtors through financial repression.

Of course, inflation is an unfair and arbitrary transfer of income from savers to debtors.

All material accounts receivable have been included in the financial statements and represent valid claims against debtors.

Often, debtor countries are squeezed so hard for payment that they are bankrupt again after a few years.

First, it aims to ensure that obligations are fairly and regularly met when a debtor becomes financially insolvent.

Most of the big Latin American debtors took extraordinary pains to avoid an explicit default.

Indeed, the proportion of deficit spending among enterprises is on the rise, and the accounts receivable turnover rate is falling.

Eighth, an extended period of negative real interest rates implies a redistribution of income and wealth from creditors and savers toward debtors and borrowers.

Even if we can coerce traditional debt free savers to spend, it is unlikely that there are enough of them in Las Vegas.

Just as inflation helps debtors by eroding the real value of their debts, deflation hurts them by increasing the real value of what they owe.

Debt relief could take various forms other than Eurobonds, and would be conditional on debtors abiding by the fiscal compact.

Savers were repressed in order to lower the costs of credit for debtors (including governments) and those seeking to borrow for business expansion.

24 Collective Action Clauses included in bond or loan contracts would prevent a minority of creditors from blocking negotiations with the debtor.

If Greece chooses default, they cannot enforce their banks claims on Greek borrowers or seize Greek assets.

(b) Debtor creditor dialogue to explore alternative market based approaches for dealing with debt service difficulties in order to avoid defaults

The details differ, but the idea is the same creditors are shifting the entire burden of adjustment onto debtors, while the center avoids its own responsibility for the imbalances.

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The broader message from the Greek and French elections is that the attempt to impose a benevolent creditors dictatorship is now being met by a debtors revolt.

Thus, Peru saw its labor legislation virtually rewritten by United States Congressmen indebted to American unions before the US Peru PTA was concluded.

28 Bilateral investment treaties which include bonds in the definition of investment can lead to claims against debtors for expropriation in the context of debt restructuring.

But this fear is unfounded, because it is based on a misunderstanding. What matters for debt service capacity is the debtors' income, not the general price level.

When the 2005 bankruptcy law was passed, lenders were the beneficiaries they didn t worry about how the law affected the rights of debtors.

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Roster

List of cases

Annex

Signatory observer States

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25 (f) ibid., 2003, Supplement No. 23 (E 2003 43), paras.

Amnesty International

Persistent Organic Pollutants Review Committee

UNU United Nations University

1 Security Officer (FS)

Senegal Malick Thierno Sow, Leysa Faye

During the course of a debate, the Chairperson may announce the list of speakers and, with the consent of the Committee, declare the list closed.

During the course of a debate, the Chairman may announce the list of speakers and, with the consent of the Committee, declare the list closed.

UNEP OzL.Pro.16 13.