Washington DC, October 14, 2017 - Statement by the Co-chairmen on behalf of the Group of Trustees:
Dr. Zhou Xiaochuan, Governor, People's Bank of China
Mr. Francois Villeroy de Galhau, Governor, Banque de France
Dr. Axel Weber, Chairman of the Board of Directors, UBS Group AG
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 discussed the comprehensive 2017 Report on the Implementation of the Principles' presented to them by the Principles Consultative Group (PCG), which includes senior officials' from emerging and mature market economies as well as senior bankers and investors. They' noted that key elements of the Principles have been applied in the process of negotiating the' sovereign debt restructuring in Belize in March 2017.
Over the last year, members of the PCG, together with the IIF and International Capital Market' Association (ICMA), collaborated to update Annex VI of the Principles - "Best Practices for the' Formation and Operation of Creditor Committees" - to add references to recent innovations in' sovereign bond contracts, including aggregated CACs, while preserving the good faith criterion.
The Trustees welcomed the confirmation by the PCG that creditor committees continue to be' an important vehicle for negotiations between sovereign debtors and private creditors in both' pre- and post-default scenarios. They approved the amended version of Annex VI and the' Executive Summary and encouraged the PCG to use the documents to raise support for the' principle of creditor engagement.
The Trustees also noted the PCG's useful role in efforts to strengthen the framework for' sovereign debt markets by engaging with the Bank of England Working Group in the process of' development of the model set of terms and conditions for GDP-linked bonds.
The Trustees noted the continued discussions between private and public creditors on' strengthening coordination between the two. Discussion have centered around coordination,' cooperation and information sharing between public and private sector creditors before and' during debt restructuring. The Trustees agreed that cooperation, information sharing, and fair' burden sharing by all stakeholders have been and will continue to be the cornerstones of the' most successful sovereign debt restructuring agreements.
During the 2017 Meeting, the Trustees bid farewell to Mr. Christian Noyer, who transfered his' co-chair duties to Governor Villeroy de Galhau. The Trustees welcomed Governor de Galhau as' Co-Chair and a valuable addition to the leadership of the Group.