The principles were accepted on April 23, 2012 at a panel debate at the UNCTAD XIII quadrennial conference held in Doha.
The panel discussion on “debt crisis prevention and management” marked the beginning of official endorsement of the UNCTAD Principles on Promoting Responsible Sovereign Lending and Borrowing, the UN agency said in a statement.
The principles aim to reduce the frequency and severity of debt crises by developing a set of voluntary guidelines that promote and reinforce responsible sovereign lending and borrowing practices.
Lack of globally agreed rules and regulations guiding sovereign financing has contributed to many instances of irresponsible sovereign borrowing and lending to sovereign countries. The principles are meant to fill this gap, UNCTAD said.
UNCTAD Deputy Secretary-General Petko Draganov, addressing the gathering, said the Principles are entering a new phase.
Intergovernmental consensus on the standards, he said, would represent an important step towards preventing debt crises.
He welcomed the start of the new phase of endorsement and implementation of the Principles.
Senior government officials participating in the meeting expressed their support of the Principles, saying that more responsible financing would contribute to more financial stability and improved economic growth.
By Ekow Quandzie