ABSTRACT
Constitutional and international human rights obligations, in particular obligations to protect economic, social and cultural rights, might also limit the freedom to contract or repay debt. In Argentina, the Constitution does not include any provisions restricting the amount of debt that can be taken up. However, it contains an article that specifically deals with the purposes for which debts can be contracted. Article 4 of the Constitution, states that: The Federal Government provides for the expenditures of the Nation with the funds of the National Treasury of whatever loans and credit transactions Congress may order in case of national emergencies or for enterprises of national interest. It is interesting to note that in Germany, the constitutionality debate surrounding sovereign debt is frequently linked to a discussion of concepts of democracy, as it argues that governments need to show some reluctance and self-restraint in taking up debt, because they create obligations which bind future governments and inevitably limit their discretion.
