GENEVA - A UN expert today acknowledged the outcome of the New York State legislative process on the proposed New York Taxpayer and International Debt Crises Protection Act which took place last week, noting that although the bill was not adopted, the debate represents meaningful progress.
"The discussions surrounding this legislation reflect increasing recognition of the link between sovereign debt and human rights," said Attiya Waris, the Independent Expert on foreign debt and human rights. "This engagement is an important step forward and should continue."
The proposed bill aimed to address key challenges in sovereign debt restructuring, including equitable burden-sharing and the role of private creditors. The expert said unsustainable debt levels continue to affect many countries, limiting their ability to fund essential public services and fulfill the realisation of economic, social and cultural rights.
"When debt restructuring is delayed or inequitable, the heaviest burden falls on the most vulnerable," she said.
Waris recalled concerns raised regarding litigation strategies by some investors involving distressed sovereign debt, which may disrupt restructuring efforts and have disproportionate impacts on developing economies. At the same time, she acknowledged differing perspectives raised during the legislative process, including concerns about financial markets and New York's role as a global financial hub.
"The diversity of views reflects the complexity of the issue," she said.
The expert encouraged continued dialogue among policymakers, financial actors and civil society to advance fair and sustainable solutions, including by consulting the Guiding Principles on foreign debt and human rights.
"This conversation must not end here," she said. "Sustained engagement remains essential to building a more equitable and resilient international financial system."
