UN sets principles for debt restructuring framework

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.
   [buenosairesherald.com]
28/7/15