After describing the four key features of the proposed formal sovereign debt restructuring mechanism, the question of legal basis for such a mechanism is raised and answered in the following words. "If we are to restrict the ability of creditors to enforce their claims in national courts, then the mechanism must have the force of law in those countries where enforcement might be sought.
Looking to lessons from government-initiated bans and nonmonetary currencies Indeed, [during] the conference in Cebu that the BSP hosted with the IMF [International Monetary Fund], a representative from India asked a very difficult question: "If these VAs are primarily designed to avoid and elude government, what should be the government's attitudes toward it?" The logical answer is "panic," right?