Sovereign Debt and Eurozone

Our Sovereign Debt and Eurozone group includes lawyers with sovereign debt, restructuring, financing, financial regulation and litigation expertise. We have provided advice to a range of public and private sector clients around the world on sovereign debt, restructuring and eurozone-related issues.

We have advised:

  • HM Treasury in relation to the UK Government support given to the banking and finance industry, this included:
    • being retained in 2007 and working for HMT continuously through the financial crisis, in particular on the guarantee and funding arrangements for Northern Rock and on the programme that underwrote the recapitalisation of the entire UK banking sector
    • interventions in the form of bank resolutions, guarantees, funding and capital injections with a value exceeding £1 trillion
  • HM Treasury and the UK Financial Services Compensation Scheme in relation to the collapse of the Icelandic banks
  • the Irish Government on the reorganisation and recapitalisation of certain Irish banks and on legislation relating to the Irish banking crisis
  • the Ministry of Finance in a eurozone member state in connection with the recapitalisation of certain systemically important banks, using facilities from the IMF
  • the Ministry of Finance of the Republic of Greece in 2010 in relation to the provision of loans of up to EUR 80 billion to Greece by other EU Member States in the Euro area

In addition, we have been advising clients on the possible implications of the current eurozone crisis. This has included:

  • considering the impact of a break up of the euro or a withdrawal from the euro by one or more eurozone member states
  • contingency planning, including the development of robust contingency plans for our clients
  • considering issues relating to re-denomination risk and counterparty risk
  • the potential impact of the crisis on new transactions and existing contracts

Partner Contacts

Our key experience includes advising:

HM Treasury in conjunction with its own lawyers in relation to numerous aspects of the Government support given to the banking industry.

The Department of Finance and the National Treasury Management Agency in Ireland, in conjunction with Arthur Cox, in connection with a wide range of issues relating to the Irish banking crisis.

The Ministry of Finance of the Republic of Greece in relation to the provision of loans of up to EUR 80 billion to Greece by other EU Member States in the Euro area.

HM Treasury and the Financial Services Compensation Scheme in relation to the Icelandic bank collapse.

Certain creditors in relation to the restructuring of Greece’s sovereign debt.

The Ministry of Finance in a eurozone member state on the recapitalisation of certain systemically important banks, using facilities from the IMF.

A number of clients on the possible implication of the eurozone crisis, including break-up scenarios and contingency planning.