The Andean approach to stabilisation clauses
by Camilo A. Rodriguez-Yong; Karol X. Martinez-Muñoz
International Journal of Private Law (IJPL), Vol. 6, No. 1, 2013

Abstract: This article aims to recognise the features that identify the Andean approach as a region of the stabilisation clauses by analysing the experience of Colombia, Ecuador, Peru and Bolivia. This approach is characterised by: 1) involving a classic freezing stabilisation clause; 2) being used as an instrument to promote investment in the country; 3) keeping the State power to enact new laws; 4) being utilised by investors of multiple economic sectors and activities; 5) being incorporated in contracts of private and administrative character; 6) being entered into by national and foreign investors and natural and legal persons; 7) being regulated by a statute; 8) imposing a mandatory minimum amount for the investment; 9) being exceptionally onerous; 10) having a temporary character, and finally; 11) guaranteeing legal stability over tax law and other law areas.

Online publication date: Fri, 29-Nov-2013

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