Which of the Following Is an Effective Measure for Claimholders

Multiple Choice

Which of the following is an effective measure for claimholders if a foreign government prohibits repayment of debt obligations to an international lender?

A) The claimholder can recover its outstanding debt through local courts.
B) The claimholder can recover its outstanding debt through international courts
C) The claimholder cannot do anything.
D) The claimholder has limited recourse through normal legal channels but may exert leverage if it has control over future loans or supply of funds.