Restructuring of sovereign debt: UN Expert stresses GA principles are binding
by Juan Pablo Bohoslavsky
The Independent Expert on the effects of foreign debt and human rights, Juan Pablo Bohoslavsky, welcomed today the new resolution adopted by the United Nations General Assembly on the “Basic Principles on Sovereign Debt Restructuring Processes.”
“The new GA resolution is a positive step towards clarifying which existing rules and principles of international law apply to sovereign debt issues,” said the Expert. “It will for example provide legal guidance on how to prevent and deal with vulture credits,” he added.
“Sovereign debts should be geared towards implementing economic and social policies, with a view to achieving growth and development in the concerned countries. Unfortunately, as it is too often the case, sovereign debts can also throw millions of people into poverty, in particular when resulting in a debt crisis,” said the expert.