The Principles for Stable Capital Flows and Fair Debt Restructuring are a key element of the international sovereign debt architecture. Since their endorsement by the G20 in 2004, the Principles have proven to be an effective framework for sovereign debt crisis prevention and crisis resolution that is widely referenced by debtors, official and private creditors, international financial institutions, and other stakeholders.
The Principles, updated as of April 2022, are voluntary guidelines with four building blocks. The Principles aim to foster:
In cases where debt restructuring becomes inevitable, the Principles aim to facilitate a voluntary, predictable, and orderly debt restructuring process based on:
The updates focus on three broad areas: