Hidden sovereign finance

IF 0.9 Q2 LAW

Capital Markets Law Journal Pub Date : 2021-04-05 DOI:10.1093/cmlj/kmab002

Lupo-Pasini F.

{"title":"Hidden sovereign finance","authors":"Lupo-Pasini F.","doi":"10.1093/cmlj/kmab002","DOIUrl":null,"url":null,"abstract":"<span><div><div>Key points</div><ul><li>The term ‘hidden sovereign finance’ refers to sovereign debt transactions in favour of a central government, sub-state entity or state-owned enterprise, whose entire existence or whose terms have not been fully disclosed in violation of local administrative or constitutional requirements.</li><li>The phenomenon was first reported with regard to the Mozambique hidden loans case, but it likely extends beyond that.</li><li>Lenders include private banks, state-owned banks and commodity traders. Products include loans, government guarantees and trade financing schemes linked to commodities exports.</li><li>New voluntary transparency standards for lenders, including the ‘G20 Voluntary Principles for Debt Transparency’, encourage lenders to disclose a large part of the loans and guarantees to sovereigns and sub-sovereigns.</li><li>As international contracts, hidden financing deals can be litigated in commercial courts. The principles of capacity and authority can, under certain circumstances, invalidate a contract signed in violation of the borrower’s law.</li><li>Corruption can sometimes be an additional factor in the decision not to disclose the debt transaction.</li></ul></div></span>","PeriodicalId":43720,"journal":{"name":"Capital Markets Law Journal","volume":"7 1","pages":""},"PeriodicalIF":0.9000,"publicationDate":"2021-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Capital Markets Law Journal","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1093/cmlj/kmab002","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"LAW","Score":null,"Total":0}

引用次数: 0

Abstract

Key points

The term ‘hidden sovereign finance’ refers to sovereign debt transactions in favour of a central government, sub-state entity or state-owned enterprise, whose entire existence or whose terms have not been fully disclosed in violation of local administrative or constitutional requirements.
The phenomenon was first reported with regard to the Mozambique hidden loans case, but it likely extends beyond that.
Lenders include private banks, state-owned banks and commodity traders. Products include loans, government guarantees and trade financing schemes linked to commodities exports.
New voluntary transparency standards for lenders, including the ‘G20 Voluntary Principles for Debt Transparency’, encourage lenders to disclose a large part of the loans and guarantees to sovereigns and sub-sovereigns.
As international contracts, hidden financing deals can be litigated in commercial courts. The principles of capacity and authority can, under certain circumstances, invalidate a contract signed in violation of the borrower’s law.
Corruption can sometimes be an additional factor in the decision not to disclose the debt transaction.

查看原文本刊更多论文

隐藏的主权金融

“隐性主权金融”一词指的是有利于中央政府、地方政府实体或国有企业的主权债务交易，这些交易的全部存在或条款没有完全披露，违反了地方行政或宪法要求。这种现象最初是在莫桑比克的隐性贷款案中被报道的，但它可能不止于此。出借方包括私人银行、国有银行和大宗商品交易商。产品包括与大宗商品出口相关的贷款、政府担保和贸易融资计划。新的贷款机构自愿透明度标准，包括“G20债务透明度自愿原则”，鼓励贷款机构披露对主权国家和次主权国家的大部分贷款和担保。作为国际合同，隐性融资交易可以在商事法庭提起诉讼。在某些情况下，能力和权力原则可以使违反借款人法律而签订的合同无效。腐败有时可能是决定不披露债务交易的另一个因素。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Capital Markets Law Journal LAW-

CiteScore

1.30

自引率

0.00%

发文量

期刊介绍： This journal is essential for all serious capital markets practitioners and for academics with an interest in this growing field around the World. It is the first periodical to focus entirely on aspects related to capital markets for lawyers and covers all of the fields within this practice area: Debt; Derivatives; Equity; High Yield Products; Securitisation; and Repackaging. With an international perspective, each issue covers articles and news relevant to the financial centres in the US, Europe and Asia. The journal provides a mix of thoughtful and in-depth consideration of the law and practice of capital markets through analytical articles on topical issues written by leading practitioners and academics in the international arena. There are also articles on matters of best practice and opinion on legal and practice developments from around the world. In particular the journal offers: • Unique specialist coverage of international capital markets practice • High level of analysis for experienced lawyers and academics • Team of internationally respected editors from leading centres in the US, Europe and Asia • Quality of articles assured through peer review system.