SOGEI website background

Principles for debt transparency – Executive summary

Principles for debt transparency – Executive summary

Amid growing concern about the implications of rising global debt levels, policymakers and private sector leaders alike have been in search of ways to support debt sustainability. With encouragement from official sector collaborators and a clear mandate from the Board of Directors of the Institute of International Finance (IIF), this set of voluntary Principles for Debt Transparency is being submitted ahead of the 2019 G20 Ministerial in Fukuoka, Japan on June 8-9 for potential endorsement. Developed by the IIF Debt Transparency Working Group—which includes some of the world’s largest financial institutions—these Principles are designed to enhance transparency in private sector lending, particularly to the most vulnerable low-income countries. Greater transparency will in turn facilitate good governance, aid the fight against corruption and support debt sustainability. In this context, private sector lenders also value and refer to tools such as the IMF/World Bank Debt Sustainability Framework and IDA’s Non-Concessional Borrowing Policy. As debt sustainability is a shared responsibility, the Principles are meant as a complement to efforts to improve transparency on the part of public sector lenders and borrowers—e.g. the G20 Operational Guidelines for Sustainable Lending and the World Bank/IMF multipronged approach addressing emerging debt vulnerabilities.