THE CONCEPT OF ODIOUS DEBT IN PUBLIC INTERNATIONAL LAW

Abstract

The concept of “odious debt” regroups a set of equitable considerations that have often been raised in the context of political transitions. This paper explores the grounds of the “odious debt” concept in international law and points out that obligation to repay debt has never been accepted as absolute, and has been frequently qualified by a range of equitable considerations, some of which may be regrouped under the concept of “odiousness.” Due to the complexity and variety of transitional contexts, there is no single legal forum for the adjudication or settlement of claims of odiousness. Depending on context, such claims might appropriately be raised in bilateral or multilateral negotiations, or they could be adjudicated in domestic litigation. However, invocation of the concept of odious debt in multiple forums risks inconsistent decisions. Thus, the examination of considerations of odiousness by a single special transitional tribunal may be an attractive solution.