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Towards a lasting solution to sovereign debt problems

 

Eurodad, Afrodad, Latindadd, Jubilee USA, the Third World Network and CIDSE have published a joint statement, which calls for a lasting solution to the sovereign debt crisis and the establishment of a fair and independent international debt workout mechanism.

Following the global financial crisis, low-, middle- and high-income countries are seeing increased levels of sovereign debt. Today no international mechanism exists to deal comprehensively and effectively with sovereign debt problems.

Countries all over the world are becoming increasingly vulnerable to sovereign debt problems following the financial crisis. This looming debt crisis and the failure to deal efficiently with the current and past crises have triggered debates on how to ensure fair and predictable debt workout in the future.

The current debt crisis within the Eurozone illustrates once again that a predictable, efficient, independent and fair procedure is needed, and that once a crisis hits it is too late to define a fast and fair way out. The Eurozone crisis is also a reminder that debt and the way sovereign debt is dealt with is a highly political issue which can have enormous social and political consequences if not dealt with in an efficient way, including holding lenders to account for reckless lending and speculation.

Towards a lasting solution to sovereign debt problems

Hacia una solución duradera a los problemas de deuda soberana 

Vers une solution durable aux problèmes de la dette souveraine