1 July 2011
Draft Principles on Promoting Responsible Sovereign Lending and Borrowing
The United Nations Conference on Trade and Development has finalized a set of proposed principles intended to establish clear responsibilities for borrowers and lenders of sovereign debt. Work on the proposed standards began at the height of the global financial and economic crisis in 2009. Prior to the development of the principles, the United Nations General Assembly stressed the need for creditors and debtors to “share responsibility” for preventing unsustainable debt situations and encouraged Member States, the Bretton Woods institutions, regional development banks and other relevant multilateral financial institutions and stakeholders to pursue discussions to promote responsible sovereign lending and borrowing within the framework of the UNCTAD initiative.