Raising the FfD4 Zero Draft Ambition: UN Framework Convention on Sovereign Debt

Date & Time: Tuesday, February 11, 1:15-2:30 PM (NY Time)
Location: CR-E (In-person only)

Moderator: Mae Buenaventura, APMDD

Speakers:

• Jason Braganza, AFRODAD

• Daniela Berdeja, LATINDADD

• Chinara Aitbaeva, Nash Vek Public Foundation

• Artemesia Montes, OMEC-México/ LATINDADD

Key Discussion Points:

• The IMF and G20 remain at the core of the creditor-dominated system, which has historically failed to provide fair and lasting debt solutions for Global South countries. These exclusionary institutions should not receive further mandates through FfD4 that reinforce the undemocratic status quo.

• We welcome the proposal in paragraph 50(e) to initiate an intergovernmental process at the UN. However, this must be strengthened by a firm commitment to a UN framework convention on sovereign debt. This convention should establish:

  • A multilateral debt workout mechanism (as advocated by the Africa Group)

  • Binding principles on responsible borrowing and lending (voluntary principles are insufficient)

  • Extensive debt cancellation for countries in need

  • A debt data registry and other measures to improve debt prevention and resolution

• The disproportionate impact of debt servicing on fundamental human rights must be addressed. The burden of repayment often falls on the most marginalized and vulnerable populations, particularly women. Development policies must prioritize human rights to ensure just and sustainable economic progress.

• Any country spending more on debt servicing than on education or health should receive immediate debt relief. International financial institutions must eliminate constraints, such as public sector wage limitations, that prevent investment in essential public services.