40
0 Years of UNCTTAD Wo
ork on So
overeign
n
D
Debt Crissis Resolution Mechanissm
In
nstitutionall backgroun
nd Trade an
nd history Report also
o discussed
d the Beeing a foca
al point off the Un
nited Natio
ons system
m for deebt issues, UNCTAD U
has h a lon
ng track un
ndertaking record in research and an
nalysis on a a sovereign debt criisis resolutiion mechan
nism. UN
NCTAD starrted workin
ng on thiis issue as early as 1977, wh
hen it callled for exp
plicit prrinciples for debt resscheduling (TD/AC 2/9
9). In 19980, UNCTA
AD 's Tradee and Deevelopment Board endo
orsed a sset of “Detailed Featurees for Fu
uture Operattions Relatin
ng to thee Debt Problems Interested Co
ountriesʺ. of oping Develo
In 1986, 1
UN
NCTADʹs annual a
flag
gship Trrade and Dev
velopment Reeport, inccluded a deetailed prop
posal forr establishin
ng a proceedure forr soveereign resstructuring based debt on Ch
hapter 11 of the Un
nited Staates Bankru
uptcy Code. The and
d Developpment UNCTAD’s Worrk
on Deb
bt Issues
   need for an insolv
vency ● Prepares the annual U
UN procedure for soverreign General Asssembly paper on debt in its 1986, 1998, 2001 debt issues in addition to and 2009 isssues. The an
nnual other researrch and anallytical General Assembly A
reeport wok on deb
bt issues and
d on debt prepared by UNCTAD has repeattedly ded the need
d for recommend
such a mecchanism and
d the General Assembly
A
debt resolutions have also ccalled for issue the to be examined. developmeent finance;
● As an obsserver to thee Paris Club, proviides advisorry service to d
developing countries u
undergoing d
debt renegotiatio
on; ● Formulattes the Princiiples on Responsibble Sovereign
n Recent eveents Lending andd Borrowing aand With the on
nset of the g
global promotes th
heir financial crisis, c
UNC
CTAD implementaation; was amon
ng the firsst to reopen thee discussion
n on the mechan
nism. UNC
CTAD co‐hosted a seminar with for Initiative at Dialogue University in P
Policy Colum
mbia Febrruary ● Provides technical assistance iin debt managemen
nt to 69 developing
g countries;
● Implemen
nts projects on asset and liiability debt on of 2011 entitleed ʺResolutio
managemen
nt and risk Sovereign Debt D
Crisess: the managemen
nt Policy and a
Reseearch with the has participation of top officially. international experts and Agendaʺ senior representatives multilateral of institutions. Further discussions on this topic were undertaken in Berlin in May 2011 and Buenos Aires in December 2011 at a seminar co‐hosted by the World Bank and the Government of Argentina, where UNCTAD was invited to make presentations on this topic. discussed Responsible Lending Sovereign and Government, was started in with the World Bank, the Paris Club, regional development banks as observers, multilateral and private and academia. 66/189, UNCTAD is undertaking substantive and organizational preparation for a special event on debt restructuring mechanisms in October 2012, which will be the first time that the United Nations General Assembly other regional institutions, and experts from was made to work on a debt Assembly resolution on debt active participation of IMF, the governmental Mandated by the General Borrowing, financed by the Norwegian 2009 endorsement in April 2012, the Principles on Responsible At UNCTAD XIII, reference Future steps topic The Project on Promoting the crisis resolution mechanism. this sector, non‐
organizations Sovereign Lending and Borrowing (PRSLB) have been endorsed by 10 countries. Argentina, Brazil, Gabon, Germany, Honduras, Italy, Morocco, Nepal, Norway and Paraguay have given their official support to the Principles. Other countries have manifested their strong interest and should join the list of supporting countries soon. More than 68 countries have actively participated in the drafting of the PRSLB, through regional and bilateral There are two principles (N° 7 consultative meetings. The and N° 15) specifically on implementation debt restructuring. This has Principles been a important means of obtaining breakthrough, in view of the countriesʹ views and forging diversity of countriesʹ views consensus on an eventual debt workout elements mechanism. The acceptance of framework for a future debt these two principles shows crisis resolution mechanism. considered as strong potential indeed for evolution on this issue. Since their opening of will be on and the a an specific possible for Further information For more information on the Projects undertaken by UNCTAD in the fields of Responsible Sovereign Financing and Debt Restructuring, please visit our Website www.unctad.org/debtportal For a direct link to the Principles on Responsible Sovereign Lending and Borrowing: www.unctad.info/debtprinciples3