Glossary
Debt issued by a national government, raising money on international markets and carrying distinct enforcement and immunity questions.
Sovereign Debt and Development Finance
from International Transactions
Governments borrow internationally by issuing sovereign bonds on global capital markets, governed by English or New York law. When sovereign borrowers face financial difficulty, the restructuring process is politically and legally complex — there is no international insolvency framework for states. Institutions such as the IMF (International Monetary Fund) and World Bank play central roles in providing emergency lending and supporting structural reform programmes. Development finance institutions (DFIs), such as the UK's British International Investment, finance infrastructure and private sector development in emerging markets, often alongside commercial banks. Lawyers advising in this space work at the intersection of public international law, finance, and policy.
Governing Law
The legal system chosen by the parties to determine their contractual rights and obligations — English law is the most common choice for international commercial contracts.
Jurisdiction Clause
A contractual provision specifying which courts have the power to hear disputes arising from the agreement.
Sanctions
Restrictions imposed by governments on trade, financial transactions, or dealings with specific countries, entities, or individuals for foreign policy or security reasons.
Export Controls
Laws restricting the export of military, dual-use, and sensitive goods and technology to certain destinations or end-users.
BIT (Bilateral Investment Treaty)
An agreement between two states establishing protections for foreign investors, including rights to fair treatment and compensation for expropriation.
ISDS (Investor-State Dispute Settlement)
The arbitration mechanism through which foreign investors bring claims against host states under bilateral or multilateral investment treaties.
Transfer Pricing
The rules governing how transactions between related entities in different jurisdictions are priced, designed to prevent profit shifting to low-tax jurisdictions.
Force Majeure
A contractual clause excusing performance when extraordinary events beyond the parties' control (war, natural disaster, pandemic) make it impossible or impracticable.