Washington D.C., October 12, 2013 -

Statement by the Co-Chairmen on behalf of the Group of Trustees.

• Mr. Agustín Guillermo Carstens, Governor, Banco de México
• Mr. Zhou Xiaochuan, Governor, People's Bank of China
• Mr. Toshihiko Fukui, President, the Canon Institute for Global Studies and Former Governor of the Bank of Japan
• Mr. Christian Noyer, Governor, Banque de France

Members of the Group of Trustees of the Principles for Stable Capital Flows and Fair Debt Restructuring meet once a year to review the progress being made on the implementation of the Principles within the framework of the international financial architecture.

The Trustees took note of the comprehensive 2013 Report on the Implementation of the Principles provided to them by thePrinciples Consultative Group(PCG), which includes senior officials from emerging and mature market economies as well as senior bankers and investors. The Trustees welcomed the continued effectiveness of the PCG in providing constructive feedback to a range of authorities and private creditors over the past 12 months on the implementation of thePrinciples, policy options and adjustment needs.

In particular, the Trustees noted with satisfaction that the voluntary, market-based, flexible guidelines for the behavior of sovereign debtors and private creditors underlying thePrinciplescontinue to serve as a very useful framework for both crisis prevention and resolution with a view to promoting and maintaining stable capital flows and supporting financial stability and sustainable growth. ThePrinciplespromote crisis prevention through the pursuit of strong policies, data and policy transparency, and open communication and dialogue with creditors and investors (particularly under investor relations programs), and effective crisis resolution through inter alia good-faith negotiations for a fair debt restructuring deal with representative groups of creditors.

The Trustees welcome the review by the PCG of a number of recent country cases of sovereign debt restructuring in the Caribbean and elsewhere and its assessment of the lessons learned. The Trustees also noted the discussion by the PCG of the ongoing reflection and assessments in a number of fora of the modalities for sovereign debt restructuring and of possible refinements. In this context, the Trustees underscored the importance of the current contractual approach as embodied in thePrinciples. They also reaffirmed the central importance of good-faith negotiations with representative creditor committees in facilitating an early return to market access by debtors and the attainment of debt sustainability should not be overlooked.