Quote from Daal:
a society(and correa) has to consider wrong to default on obligations take by previous administrations or previous CEOs otherwise that would bring down the core of the legal system
The primary beneficiary(and the name on which the debt is held)is of the loan proceeds were the people of Ecuador, not their president. they owe the money to the investors even if their representative keeps changing
the primary beneficiary of a corporate loan is the corporation, that corporation owes the money even if the ceos made a silly mistake and then steps down
Branches of government are treated as legal entites that can be sued by the law afterall
So you think debt is owed not just by the person or legal entity who borrowed the money, but whoever that person or entity then gives the money to? By that logic, if I borrow a fortune and give it away to friends, or spend it in shops, then the friends & shops would be liable for the debt. Clearly that is nonsensical.
Debt does not have any moral force beyond the terms agreed to, either explicitly or implicitly. It is a voluntary contract, not an imposed one like a lien or fine or war reparations. Government loans are clearly given and received under the understanding that they can be defaulted on at any time, with no recourse to the *citizens* of the country in question. The *government's* assets abroad (except those with diplomatic immunity) can be seized in the event of default, but not the assets of citizens. If you disagree, I invite you to give even one legal decision where a court has said it's legal to seize the assets of one of a defaulting country's citizens.
With a corporation, the agreement is to pledge shareholder assets to back the debt, but nothing beyond that. There is limited, not total, liability for shareholders. Equally, management have no personal liability for corporate debt, just as citizens and representatives have no liability for government debt.
Talk of the legal system collapsing is hyperbole. There are established procedures for both corporate and government default. They are based purely on law. If an corporation defaults, then creditors get a claim on the corporate assets. If a government defaults, creditors get a claim on certain overseas assets. That's it. No claim on managers, shareholder's personal wealth, citizens, elected or non-elected representatives etc. No one goes round seizing the government's domestic buildings, sewers, airports, roads, military vehicles etc.
