UN resolution on sovereign debt restructuring

12 September 2014
Question for written answer
to the Commission
Rule 130
Notis Marias (ECR)

On 9 September 2014, by 124 votes to 11 with 41 abstentions, the UN General Assembly adopted the resolution ‘Towards the establishment of a multilateral legal framework for sovereign debt restructuring processes’ (A/68/L.57/Rev.1) in the developing countries.

The resolution stresses the special importance of a timely, effective, comprehensive and durable solution to the debt problems of developing countries in order to promote their inclusive economic growth and development and calls for the intensification of efforts to prevent debt crises and for measures to be taken to curb the activities of various hedge funds, with a view to adopting a new approach designed to achieve political solutions to sovereign debt issues, ensuring that international creditors do not treat countries as corporations.

Given the EU’s relations with the dozens of developing countries affected, what view does the Commission take of the resolution adopted by the UN General Assembly? What practical steps will it take to implement the resolution and when?

Source: European Parliament

Joint answer given by Mr Katainen on behalf of the Commission

1. The European Commission takes note of the UN resolution and considers the topic on which it touches upon as important. Experiences with recent restructuring cases point to some weaknesses in the current global institutional and legal framework for sovereign debt restructuring. Against this background, EU Member States are for more than one year engaged in a comprehensive review of this global framework together with the IMF (International Monetary Fund). This work is still ongoing. The Commission has taken an active stance in coordinating a common position among EU Member States in these discussions.

2. The EU will remain actively involved in the discussions taking place within the IMF framework.

Source: European Parliament

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