28 July 2015: The UN Ad Hoc Committee on Sovereign Debt Restructuring has concluded its work, adopting a report for submission to the UN General Assembly that reaffirms the UNGA’s central role in contributing to the review of the international financial and economic architecture. The report includes the Chairs’ summary and principles on sovereign debt restructuring, which, according to a statement made on behalf of UNGA President Sam Kutesa, “could serve as a basis for future deliberations of the UN General Assembly towards a multi-lateral legal framework for sovereign debt restructuring processes with the participation of all Member States.”

The Committee was established in late 2014, per UNGA resolution 69/247, to elaborate and adopt, through a process of intergovernmental negotiations, a multilateral legal framework for sovereign debt restructuring, in order to increase the efficiency, stability and predictability of the international financial system and achieve sustained, inclusive and equitable economic growth and sustainable development, in accordance with national circumstances and priorities. The Committee was chaired by Sacha Llorenty, Permanent Representative of Bolivia.

The nine principles, as noted by the Chairperson’s summary, underline the sovereign right to start a restructuring process and stress the need for: good faith negotiations by debtor and creditor; transparency of the process and related data; impartiality of all institutions and actors involved; equitable treatment of creditors; sovereign immunity of states before foreign courts; legitimacy of the institutions involved; sustainability: speedy conclusion, and outcomes that promote growth and respect human rights; and majority restructurings: minorities that respect decisions approved by the majority.

The last session of the Committee took place on 27-28 July 2015, in New York, US. The first two sessions took place on 3-5 February and 28-30 April 2015, in New York, US. [UNGA President’s Remarks] [Chairperson’s Summary] [IISD RS Story on Launch of Committee’s Work] [UNGA Resolution 69/247]