United Nations Votes on Principles to Prevent Debt Crises

The United Nations General Assembly will likely vote in favor today on principles to guide economies facing financial distress. A UN committee approved the principles this summer as part of broader UN efforts to create a global bankruptcy process for countries. 



"The United Nations is acting because it sees how countries are negatively impacted by debt crises," said Eric LeCompte, executive director of Jubilee USA Network, a religious development coalition. LeCompte advised the UN on the principles. 



The UN voted 124-11 last September to develop a bankruptcy process amidst debt crises in Greece, the Caribbean and Argentina. During the process, the United Nations Conference on Trade and Development (UNCTAD) released a road map report on guiding restructuring processes. That report led this summer to a UN committee approving nine debt restructuring principles, including good faith, transparency, impartiality, equitable treatment of debt holders and sustainability. The General Assembly will vote today on adopting those principles.

"Debt crises hurt poor people in every corner of the world," noted LeCompte, who consulted on the UNCTAD road map. "The UN is laying a framework to eventually offer bankruptcy protection to countries just as cities and states are protected in the United States."

Jubilee USA Network is an alliance of more than 75 US organizations and 400 faith communities working with 50 Jubilee global partners. Jubilee's mission is to build an economy that serves, protects and promotes the participation of the most vulnerable. Jubilee USA has won critical global financial reforms and more than $130 billion in debt relief to benefit the world's poorest people. http://www.jubileeusa.org