ICSD meaning

Honduras rejects the ICSID Convention In recent weeks, Honduras announced it would repudiate the international treaty under which it consented to submit disputes to the World Bank’s International Centre for Settlement of Investment Disputes (ICSD), better known as the ICSID Convention. The move followed the country being hit last year with nine distinct ICSID claims, among them a politically charged action brought by a US-based developer seeking up to US$10.7bn in compensation. Honduras now mirrors three other Latin American states that have denounced the ICSID Convention: Ecuador, Bolivia and Venezuela. Across Europe, parliament have also been keen to jettison investment arbitration in favour of a new investor court, promising reforms they believe could rebalance a regime that critics often say tilts towards investors. India, South Africa and New Zealand have likewise taken steps in recent years to curb their exposure to investor–state disputes, so at first sight it may seem these Latin American moves are part of a worldwide revolt against investor–state arbitration. Yet that impression would overlook a...

This Practice Note outlines the principal elements of the Deposit Guarantee Schemes Directive 2014/49/EU (DGSD), which obliges Member States to create a deposit guarantee scheme (DGS) to safeguard depositors and bolster financial stability by mitigating the threat of a run on the bank. The recast DGSD superseded and repealed Directive (EC) 94/19/EC (the original DGSD) for clarity after substantial amendments over the years. As the UK was an EU Member State when the DGSD began to apply, the recast EU DGSD was implemented in the UK; accordingly, this Practice Note addresses both the EU requirements and the UK’s implementation. Background and introduction to the DGSD The DGSD is one of two existing EU guarantee scheme directives. The other, the Investor Compensation Schemes Directive 97/9/EC (ICSD), is discussed in Practice Note: Investor Compensation Schemes Directive. The original DGSD, introduced in 1994, required only minimum harmonisation between domestic DGSs within the EU. That framework proved disruptive for financial stability and the internal market, particularly during the 2007–2009 financial crisis. A...

Debt securities, including bonds, medium-term notes and commercial paper, are financial instruments that evidence indebtedness. For further information, see Practice Notes: Key features of the debt capital markets and Types of debt securities. This Practice Note reviews some of the forms that debt securities may take and sets out the meanings of, and distinctions between: a definitive security and a global security, and a global security in bearer form and a global security in registered form The emphasis of this Practice Note is on the principal features of global debt securities and the structures used for global notes. It should be read together with Practice Note: Form of debt securities—definitive securities, which explains the key features of definitive securities. What are the differences between global securities and definitive securities? In principle, debt securities can be issued in either definitive form or global form. In practice, all debt securities issued in the international capital markets are issued in global form...

This glossary sets out numerous expressions regularly encountered in the restructuring & insolvency sphere. Words shown in bold within definitions are themselves explained in other entries in this glossary as well. A Article X The MLIJ contains a single provision named Article X, aimed at jurisdictions that have already implemented the MLCBI, like England, or are weighing its adoption. Article X states: ‘Not withstanding any prior interpretation to the contrary, the relief available under [insert a cross-reference to the legislation of this State enacting Article 21 of the UNCITRAL Model Law on Cross-Border Insolvency] includes recognition and enforcement of a judgment’ (see Practice Note: UNCITRAL model law on recognition and enforcement of insolvency-related judgments (MLIJ): Article X). Asset-backed security (ABS) A form of security anchored by asset pools, for example loans, leases, and credit card receivables. Assimilated law From 1 January 2024, ‘retained law’ has been retitled ‘assimilated law’. The body of domestic law originally arising from EU obligations, created by the European...