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Roadmap and Guide for Sovereign Debt Workouts

Following the 2008 global financial crisis, the socialization of losses from private debts and the subsequent emergence of sovereign debt crises in developing and developed countries, UNCTAD decided to make a proposal to improve the coherence, fairness and efficiency of sovereign debt workouts.

For this purpose, it established an ad hoc Working Group on a Debt Workout Mechanism in 2013 composed of stakeholders and independent experts.

This roadmap contains six sections:

  • A concise summary of the key problems of current practice (A)
  • A set of five principles for sovereign debt workouts (B)
  • Global reforms recommended for smoothing debt workouts (C)
  • Steps to be taken by debtor states prior to debt workouts (D)
  • Recommendations for a reformed debt workout process (E)
  • Recommendations for courts deciding sovereign debt cases (F)

The Roadmap is accompanied by a Guide, which provides an in-depth explanation of the principles and recommendations contained in this Roadmap.

Roadmap and Guide for Sovereign Debt Workouts (UNCTAD/GDS/DDF/2015/Misc.1)
27 Apr 2015