Creditor Protection Of Sovereign Debt In International Investment Law

Sovereign debt(also known as national debt)is all debt that is loaned and repaid by a government or departments authorized by the government on behalf of the country and is guaranteed by state credit.Some scholars also define sovereign debt as:�debt that is borne by the government,usually a developing country government,for foreign investors seeking competitive returns.� After the debt crisis in a sovereign state,the current programs mainly include debt restructuring,collective action provisions and others.In the context of the current global economic downturn and increasing sovereign debt default risk,using relevant provisions of international investment treaties to resolve sovereign debt issues has certain practical significance.Sovereign debt disputes can be appealed to domestic or international dispute resolution agencies,of which the most influential should be the International Investment Dispute Resolution Center.The sovereign debt crisis is of great harm.Not only does the creditor fail to realize the rights,but it also brings great trouble to the debtor countries and even jeopardizes the economic operation of one country,other countries and even the world.In 2014,the UN General Assembly passed a resolution of adopting intergovernmental negotiations to draft a multilateral legal framework including a dispute settlement mechanism to resolve sovereign breach of contract as soon as possible.However,some debtor countries are always cautious about their economic sovereignty.In addition,creditors and debtor countries have different positions and different considerations,so it is not easy for the parties to reach a consensus and establish a multilateral legal framework.After defining the sovereign debt and sovereign debt default in international law,this article discusses the traditional methods of protection for creditors of sovereign debt,and then further expands the protection of creditors' substantive laws ininternational investment treaties focusing on national treatment,most-favored-nation treatment,fair and equitable treatment and umbrella clauses,of which the purpose is to protect foreign investors and their investments.Mainly based on its own unique advantages and performance in past cases,international arbitration is popular in resolving sovereign debt disputes.This article focuses on discussing the general procedural rules and advantages of international investment arbitration and the special procedural law of creditor protection by combining typical cases.In terms of specific content,this article mainly includes jurisdiction,composition of tribunal,arbitration trial,arbitral award,etc.Although the introduction of investment arbitration provides a new path for the creditor to seek legal remedies,the settlement of the sovereign debt crisis will fall into deadlock for the creditors with high expectation of the arbitration mechanism refusing to accept the original reasonable reorganization arrangement.The deadlock,in turn,harms the interests of the host country.In the international investment treaty and its arbitration,how to seek a reasonable balance between the protection of investors and interests of the host country is also one hot issue in the field of international investment.To reasonably balance the relationship between the two,the necessary exception clauses should be set in the current investment treaty,including national security,public order,and financial prudence,so as to reserve the necessary space for the host country to maintain national security and public interests.Based on the existing research,this article seeks to find a viable creditor protection mechanism of default in sovereign debt.