Explanation of Position on a Second Committee Resolution on External Debt

Jay M. Kimmel
Adviser for Economic and Social Affairs
U.S. Mission to the United Nations
New York City
December 2, 2018


Thank you, Chair.

While we are joining consensus on this resolution, we take this opportunity to clarify important points, in the hope that the Second Committee can do better the next time this items is on the agenda. As it stands, we have concerns that this resolution does not sufficiently and accurately address issues such as debt sustainability and transparency.

Regarding the references to non-cooperative minority bondholders, we note that the ability of such bondholders to block a deal is permitted by law in the covenants agreed to by the issuer. As such, we believe it is outside the scope of a UN resolution to express concern about the enforceability of contracts.

Finally, regarding references to the 2030 Agenda for Sustainable Development, the Addis Ababa Action Agenda, the Sendai Framework, the Paris Agreement and climate change, and the characterization of trade and technology transfer, we addressed our concerns in our General Statement delivered on November 8, 2018. Thank you.