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What is the theory of odious debt or illegitimate debt?

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Deuda hatefuldebt execrabledebt illegitimate o debt unfair, a Law School international , Is the theory legal, put into effect Areas numerous times throughout the history, which maintains that the debt external of a gobierno contracted, created and used against the interests of the citizens of the country, does not have to be paid and therefore its return is not required since the borrowers would have acted in a bad faith, knowingly, and therefore such contracts - bonds or commercial contracts - are void legally. In everything ///, such debts could be considered personal and those who have contracted them should be held accountable. title staff —be it the monarch, the president, the director of central bank national or the corresponding ministers—and not the State as a whole and therefore the citizens. In some respects, the concept is analogous to the nullity of the contracts signed under coercion.

longed doctrine is present in the discussion on the legal obligation de paid of debt external in those countries where there have been dictatorships, absolute monarchies, non-representative governments and even democratically elected governments that have contracted debts behind the backs of their citizens, without their consent and for the purposes of enrichment staff, enrichment governance, for the repression social and political and, in everything ///, against the interests of the citizens themselves.

According to doctrine legal of the debt odious, theorized by Alexander Sack in 1927, a debt It is "hateful" when it meets two essential conditions:

1. - The absence de benefit for población : la debt was not contracted in favor of the interest of the town and the State, but against those interests, and/or in favor of the interest staff of the leaders and people close to the power.

2.- The complicity of the lenders: Los creditors knew (or had the capacity of knowing) that the fondos borrowed would not benefit the población.

For Sack, the despotic or democratic nature of a regime should not be taken into account account. A debt contracted by a regime authoritarian must, according to Sack, be repaid if it serves the interests of the población and a cultural, de regime does not authorize the questioning of the legal obligation that has the new regime de pay the debts of the gobierno precedent, unless they were odious.

The three characteristics to identify a debt hateful

For Alexander Sack, the three characteristics that allow us to identify a debt hateful are the following:

  • 1 - gobierno of the country receive a loan without him knowledge nor the approval of the citizens.
  • 2 - loan is used for activities that are not beneficial to the town.
  • 3 – Although the lender is informed of the situation described in the previous points grants the loan -usually by the high interest that will receive-.

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