ABSTRACT∞ The peace agreement signed by the Colombian government and FARC has an innovative sanctioning regime which, based on a restorative approach, offers non-custodial sanctions as less punitive form of punishment for international crimes. However, given their leniency, these ‘special sanctions’ have caused controversy. Based qualitative interviews, this study explores perceptions different...

We model sovereign debt in the absence of a bankruptcy code. Threat of trade sanctions and seizure of exports by the lenders are the drivers of enforcement of sovereign debt contracts.The borrower takes these potential actions into account when choosing optimal voluntary default and debt capacity. We obtain a closedform solution for the sovereign yield spreads that depend on the costs of sancti...