A partnership with academia

Building knowledge for trade and development

        • Preview
          Responsible Sovereign Lending and Borrowing (English)
          Discussion paper by Buchheit, Lee C., Gulati, G. Mitu/ UNCTAD, 2010, 32 pages
          Categories: Finance for Development

          There are three reasons for attempting to reach a common understanding of the responsibilities of sovereign borrowers and their lenders. First, the flow of capital to sovereign debtors is exceptionally important to the world economy. Second, sovereign finance is uniquely unforgiving of mistakes. Third, the human cost of prodigal sovereign borrowing, reckless sovereign lending or incompetent sovereign debt restructuring is incalculable. This paper shows that a consensus about the responsibilities of sovereign borrowers and lenders, together with improvements in the way in which sovereign loans are planned, executed, documented and, when necessary, restructured, will directly affect the lives of most of the people that live on this planet.