Part III Subject-Matter Mediation of Commercial and Investment Disputes, 12 Mediating Sovereign Debt Disputes
Calliope M. Sudborough
Edited By: Catharine Titi, Katia Fach Gómez
- Investor — Debts — Arbitration — Mediation
In response to the limitations of adjudicating disputes arising out of public debt and the resulting underdeveloped international body of law on sovereign defaults, creditors have filed a growing number of investor-state treaty arbitrations to collect unpaid debts, prompting a shower of criticisms and concerns. This chapter discusses a still-unexplored means for resolving sovereign debt claims: mediation. It explains how mediation differs as a process from judicial litigation and private arbitration, producing very distinct outcomes. Specifically this chapter argues that mediation should be explored as a viable option for resolving sovereign debt disputes in a cost and time efficient manner that could support economic recovery and continued investment.