Eurodad's Charter on Responsible Financing - SLUG

In the absence of an international insolvency regime and in the face of the continuing ad hoc and haphazard treatment of the sovereign debt of developing countries, we are demanding a series of contractual changes in loan contracts issued to sovereign states. These measures aim to provide guidance, fairness and certainties to borrower states and lenders as well as protect the citizens and environments of developing nations. The proposal moves away from institution or sector specific approaches to dealing with concerns over ‘responsible lending’ and ‘fair resolution of debt crises’ towards internationally recognised legal standards for responsible financing.

Eurodad’s Charter on Responsible Financing outlines the essential components of a responsible loan. These aim to ensure that terms and conditions are fair, that the loan contraction process is transparent, that human rights and environments of recipient nations are respected and repayment difficulties or disputes are resolved fairly and efficiently. Many of the provisions outlined in Eurodad’s charter are drawn from international treaties and conventions to which lender and borrower nations are signatories.

Source: Eurodad

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