Edição Especial - Faap

went untested and this is likely to be the case for several more years. Even here
there are loopholes since not all debt of the same issuer carries those provisions
and they do not deal with situations where there is lack of willingness to resolve
abnormal situations. The dispersion of debt holders in the context of vacuum
mentioned creates an environment that nevertheless enhances chances of success
of a unilateral offer made by the debtor. The alternatives seem to be less attractive.
Functioning of financial markets
Last, but not least, another aspect that merits review is the functioning of
financial markets. It was thought that effective dilution of implications of cross
border risk – in the context of increased capital mobility – would reflect in
lower systemic risk attributable for transactions for both the private and public
sectors in perceived higher-risk countries. Otherwise, financial transactions
carried out or involving those countries would bear higher cost of capital if the
applicable rules were subject to particular interpretations.
Payment restrictions – temporary although, given the existence of
offsetting channels – and other rulings based upon domestic decisions have
recently reinforced the existence of sovereign factors that ought to be
contemplated.
Still, when there is convergence to international standards concerning
financial markets practices, implications of domestic jurisdiction are to be
considered. These domestic factors still reflect in differentials affecting costs of
financial transactions. Attempting to reduce them would not be easy in the first
instance, particularly in countries that do not have deep ties to the rest of the
world. Even then, if pursued, some would think it to be at the expense of
desired sovereign degrees of freedom.
Agenda
The process of adapting to evolving patterns of financial markets is still in
progress. It is also very likely that repercussions of technological changes as well
as international understandings will continue to affect the functioning of those
markets. The challenge in setting up the current agenda is how to incorporate
those in the patterns of behavior that would reduce the systemic risk while
creating proper mechanisms, including ways of dealing with financial crises.
This would mean that aiming at increased financial stability through those
means ought to become more relevant than the more publicized role of
promoting official lending channels through international bodies. It seems that
we have to get more prepared to meet this challenge.
Permissões negociáveis com prazo..., Charles Edwards Allen e Flavio Condé de Carvalho, p. 5-17
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