Alemdar, Nedim M.Sirakaya, SibelTurnovsky, Stephen J.Cheung, Y. -W.Wong, K. -Y.2019-04-272019-04-2720089780203886397http://hdl.handle.net/11693/50971It is widely recognized that the well-established principle of sovereign immunity poses an additional risk for lenders of international capital. The lack of any notable collateral and the absence of a supranational institutionwith a recognized authority to enforce loan contracts limit lending to sovereign states. Assuming participants in international capital markets are rational, any sovereign loan contract must therefore be self-enforcing.Foreign lending under limited enforcementBook Chapter10.4324/9780203886397