Moving from Creditor-Centric Debt Relief Initiatives Towards the Realization of the UN Framework Convention on Sovereign Debt

The world is struggling with a debt of at least USD 315 trillion with at least 30% of the total debt owed by developing economies. These crises come even after the implementation of large-scale debt restructuring initiatives. However, the debt crisis witnessed today in the Global South is an artificially created system which has failed to work for the majority. The proposal of a United Nations Framework Convention on Sovereign debt is paramount since it may act as a catalyst in promoting a financial architecture that works for development and facilitates affordable and long-term financing, thereby allowing countries to focus on development needs rather than on short-term debt constraints. This article will explore the need to implement a UN Framework Convention on Sovereign Debt under the resolutions adopted by the 2014 UN General Assembly which called for shared responsibility and sharing of the burden fairly among creditors and debtors in debt negotiations.