Eurodad's 10 principles of debt work-out - SLUG

EURODAD and many of its member organisations have long advocated for the creation of a fair and transparent debt work-out procedure at the international level. We have consistently argued that current measures to deal with sovereign debt problems are seriously deficient.

The issue is gaining new political momentum. In this context, EURODAD believes it is vital to set out what it believes to be core principles for a fair and transparent sovereign debt work-out procedure at the international level. A debt work out mechanism will not only serve to deal with debt ex post, but will also discipline lenders and promote more responsible lending and borrowing ex ante.

This paper outlines ten principles which EURODAD believes are the essential components of such a mechanism. We urge policymakers to initiate an inter-governmental initiative on the principles set out in this document and should aim to establish – within a specified timeframe – such a procedure at the international level. Given recent pressures on many countries due to the global economic downturn, the moment could not be more opportune.

Download A fair and transparent debt work-out procedure: 10 civil society principles.