The United Nations’ Ad Hoc Committee on sovereign debt restructuring processes has adopted a series of principles for the creation of an international framework governing debt restructuring, which will now be sent to the General Assembly.
After almost six months’ work, the Committee approved a document containing nine principles which seek to limit future manoeuvres from vulture funds, while encouraging countries’ growth and inclusive development.
The points agreed upon by the body are:
– The sovreign right of states to restructure their debts.
– Sovereign immunity.
– Respect for majority decision in restructuring processes.
– Equal treatment.
– Good faith.
– Transparency.
– Impartiality.
– Legitimacy.
– Sustainability.
The document will now be subject to a vote by UN member countries in a meeting which is expected to take place at the start of September.
Source: Buenos Aires Herald