Transcript Document

A fair and transparent
debt work-out procedure
10 core civil society principles
1. Creation of a body independent of creditors
- Interested parties cannot be judges
- Body can be permenant (e.g. debt court) or ad hoc
2. Independence or arbitrators
- Decision makers must be neutral
3. Mandated to verify the validility of individual
claims based on legitimacy
- Beyond the financial and economic dimension of debt, the
arbitrators must be mandated to assess legitimacy
- Prerequisite for Inter-creditor equity
- Basis can be responsible financing standards
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4. Mandated to deal comprehensively with
sovereign debt repayment problems
- Arbitrators‘ decisions deal with ALL debts that are legitimate:
avoid hold outs and prevent vulture funds litigation
5. Process may be initiated by borrower or
lender and automatic stay will apply
- standstill on external debt repayments while case is heard
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6. Assessment of the indebted country‘s
economic situation by a neutral body
- Independent agency to do debt sustainablity analysis and
guide decision on size of haircut
7. Protection of the basic obligations of the state
to meet the essential needs and services of its
citizens
- Human rights-based approaches to sovereign debt
restructuring: Debtor state must have the resources it needed
to carry out its duties of care.
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8. Transparency
- Negotiations and agreements must be public
9. Participation
- All parties have the right to be heard, including citizens
10. Enforceability
- All parties must respect the arbitrators decisions
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Skoncujte s nelegitimní zadluzením!
Thank you
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