Analysis of State Immunity versus State Property Seizure in Enforcement of Judgment on International loan Agreement: Analytical Study of Some Eac Member States Debt Status for Recovery

Abstract

The aim of this study is the problem posed by State immunity in case of attachment of State’s property as a result of a judgment or award against a State which has been highly indebted and defaulted to honor its loan obligations. The study seeks to analyze and elaborate two majors issues including examination the degree to which a judgment or an award can be enforced against a sovereign State by seizing its property, whether State immunity matters in loan agreement and the exit strategy in case a Sovereign State defaults on its loan. The study is broken down into sections, mainly Section 1 sets out the background to international loan agreement when it comes to State property seizure in execution of judgments against State, explaining why State immunity matters, Section 2 sets out the analysis of Sovereign debt and State immunity in international law as well as explaining the conceptual legal framework of Sovereign loans and State Immunity and issues attached to it. Section 3 sets out critical analysis of selected case law on State’s immunity from enforcement of judgments or awards and will provide discussion on illegalities and its legal basis and wrap up with conclusion and recommendation of the way forward. The study concludes that a judgment can be enforced against Sovereign State’s property by the way of attachment most especially in case the seized property has been used or intended for use for commercial purposes and in that regard the State loses immunity and this allows the lender, as a judgment creditor, to enforce a judicial decision rendered against a sovereign State.