Why do we need to reform the global debt architecture? Why do we need a UN Framework Convention on Sovereign Debt? Does the UN have a mandate to lead on debt architecture reforms? What happened to the 2014 UN General Assembly resolution 68/304 for a legal framework on debt restructuring? What has the UN done on debt architecture reform since 2015? What is a framework convention? What would a UN Framework Convention on Sovereign Debt do? What is the difference between the UN Framework Convention on Sovereign Debt and the Multilateral Sovereign Debt Resolution Mechanism? What does civil society want in a UN Framework Convention on Sovereign Debt? Why do we need a Multilateral Sovereign Debt Resolution Mechanism? What does civil society want in a Multilateral Sovereign Debt Resolution Mechanism? If all countries participate in the Multilateral Sovereign Debt Resolution Mechanism, will they be able to make efficient decisions? How would a UN Framework Convention on Sovereign Debt ensure the willing participation of creditor countries? How will the UN enforce the results of a debt restructuring process under the Multilateral Sovereign Debt Resolution Mechanism? How does this proposal differ from the IMF’s attempt to establish a Sovereign Debt Restructuring Mechanism? Does the UN Framework Convention on Sovereign Debt duplicate the efforts of the G20, GSDR, and IMF? Why are we calling for a UN Framework Convention on Sovereign Debt now? Is an agreement on a UN Framework Convention on Sovereign Debt in FfD4 realistic? Who is championing the call for a UN Framework Convention on Sovereign Debt? How can I get involved?

Why do we need a UN Framework Convention on Sovereign Debt?

An agreement on the need for a debt convention would open up an intergovernmental process towards the debt architecture reform needed to prevent unsustainable and illegitimate debt accumulation and provide fair and sustainable solutions to sovereign debt crises across the globe.

Currently, while the UN Guiding Principles on Debt and Human Rights establish
the primacy of human rights over debt service, in practice we see governments
prioritising debt servicing over financing public services and guaranteeing human rights. A statutory framework could also clarify the status of debt contracts vis-àvis human rights treaties and give adequate guidance to courts worldwide.

Other necessary reforms include:

  • a new approach towards and assessment of debt sustainability;
  • an automatic mechanism for debt payments’ standstill in the wake of external shocks;
  • the promotion of domestic legislation
  • and the regulation of certain features of the financial system.

A debt convention would have all the UN Member States at the negotiating table discussing these and other necessary reforms. Without a debt convention, the current non-regime will keep global south countries in the vicious circle of new borrowing and austerity for debt repayment.