Conference on sovereign debt

7ff5b044b1On 6 February 2012 FMLC together with AEDBF organized a conference on sovereign debt at the Bank of England premises.

The Financial Markets Law Committee (“FMLC”) was established by the Bank of England in June 2002.

Its role is to identify issues of legal uncertainty, or misunderstanding, present and future, in the framework of the wholesale financial markets, which might give rise to material risks, and to consider how such issues should be addressed.

The specific subject of the conference was of particular interest as for more than two years sovereign debt markets have been remaining unstable while national, European and international initiatives have failed to calm markets’ nerves regarding the possibility of sovereign default. As a result of pressure exerted by the possibility of debt restructuring, questions are being asked about the rights and obligations arising from financial instruments such as credit default swaps and bonds.

It is in this context  that the FMLC and the AEDBF invited distinguished participants in the financial markets to examine the political, legal and commercial context of this key financial market as well to explore the effects of, and possible responses to, sovereign debt restructuring.

The conference included a discussion of the economic situation in sovereign debt markets, an exploration of the effect of collective action clauses (and the impact of local legal systems thereon), an analysis of market responses to falling asset prices and, through the lens of developments in Europe, an examination of sovereign debt restructuring.

Apart from Mr. Dimitris Tsibanoulis and, Mr. Hubert de Vauplane who participated actively as speakers at the conference, AEDBF was also represented by Mr. Pierre Fiset, who in cooperation with Ms Joanna Perkins was involved in preparing the event, Mr. Roberto Ferreti (Italy), Mrs. Marie Paule-Gillen (Luxembourg) and Mrs. Catherine Houssa (Belgium).

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