A new set of private sector principles to enhance transparency in sovereign debt markets
We are pleased to invite comments and suggestions on the latest draft of the voluntary Principles for Debt Transparency. Feedback is welcomed from all stakeholders, including private sector financial firms; official sector bodies including international organizations, finance ministries and debt management offices; and civil society.
As background, the Institute of International Finance (IIF) launched a Debt Transparency Working Group in early 2018, in response to requests from official sector entities including the G20, Paris Club and the IMF to support efforts to promote better disclosure in sovereign debt markets. Better disclosure will bring a range of benefits including improved credit assessment and decision-making by lenders; better debt management by EM borrowers (which could include better access to funding and lower borrowing costs); the promotion of debt sustainability; assistance in the fight against corruption; and the reduction in the number of incidences of market shocks.
With strong support from the IIF Board and the IIF membership at large, the Debt Transparency Working Group was mandated to develop a set of voluntary Principles for Debt Transparency. These Principles are universally applicable but oriented towards the sovereign debt markets of emerging economies, with a particular focus on the most vulnerable low-income countries.
While transparency and debt sustainability are important considerations across the spectrum of lenders, these new voluntary Principles for Debt Transparency are intended for use by private sector lenders. They are designed to complement G20 and other public sector initiatives (notably the G20 Operational Guidelines for Sustainable Financing) aimed at improving transparency on the part of public sector creditors and borrowers.
These voluntary Principles for Debt Transparency will be under the governance of the Group of Trustees of the existing Principles for Stable Capital Flows and Fair Debt Restructuring. On behalf of the Debt Transparency Working Group, the IIF Secretariat welcomes feedback on these draft Principles. Comments and questions should be submitted by email to [email protected] by May 31.
CLICK HERE FOR THE EXECUTIVE SUMMARY
CLICK HERE FOR THE FULL DRAFT OF THE PRINCIPLES FOR DEBT TRANSPARENCY
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