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Current Developments: Exceptional Recognition of Governments and Political Parties in Respect of Sovereign Loans: The Greek Case

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The International Monetary Fund and other multilateral lenders committed the Greek government to honour its obligation and adhere to the terms of its loan agreements even after the 2012 elections. This commitment was addressed to the then coalition government in power alone, and hence it is supported that the agreements are not obviously binding on other political parties that were clearly opposed to them. This practice has given rise to a paradigm of government recognition in respect of sovereign loans that excludes those political parties that are subsequently elected into power and which expressed their opposition to the loan agreements. This is particularly true where the agreements in question are odious or bring about a situation that severely affects the enjoyment of fundamental human rights by the local population.

Affiliations: 1: Professor of Public International Law, School of Law, Brunel University, UK


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