Legal framework for foreign debt of countries

Abstract

Foreign loans have distinct provisions regarding their legal nature, foreign loans are different than sources of international financing such as foreign investment, and foreign aid. Moreover, foreign loans differ from internal loans, including interest rates, borrowing conditions, loan donors, and other factors.

   The paper focuses on the idea that an international debt contract takes many forms such as an international treaty, it needs to a treaty requires the fulfillment of specific formal and substantive conditions to acquire its international legal status.

     The research problem revolves around the legal nature of the international public loan, which differs from the national public loan. The research found International foreign debt agreements concluded by the borrowing State with other States or international economic organizations are considered international treaties because their parties in all cases are subjects of public international law, and therefore subject to the provisions of public international law. However, it differs from it in terms of the details of how it materializes, except for the form element of the legal authorization by the legislature to conclude a treaty on international foreign debt.