Washington D.C., June 10, 2019 – This weekend, the G20 Finance Ministers and Central Bank Governors issued a statement of support for the Institute of International Finance (IIF)’s Voluntary Principles for Debt Transparency following a meeting in Fukuoka, Japan.
“Debt sustainability and debt transparency go hand-in-hand. It is encouraging to see the G20 and other global stakeholders recognize the importance of greater transparency in private credit and capital flows to borrowing countries,” said IIF President and CEO Tim Adams, who addressed delegates of the G20 meetings in Fukuoka on Saturday, June 8th.
In the communiqué, the G20 stated: “We support the work of the Institute of International Finance on the Voluntary Principles for Debt Transparency to improve debt transparency and sustainability of private financing and look forward to follow up.”
“Greater debt transparency will in turn facilitate good governance, aid in the fight against corruption, and support debt sustainability,” added Adams. “Through the Voluntary Principles, the IIF, representing the global financial services industry, strives to avoid the kind of debt accumulation that has become unsustainable, unserviceable, a drain on often desperate, poor populations and ultimately written down or written off in previous cycles.”
Developed by the IIF Debt Transparency Working Group — with strong support from the IIF Board of Directors — these Principles are designed to enhance transparency in private sector lending, particularly to the most vulnerable low-income countries.
The next steps in operationalizing the Principles will require identifying an appropriate repository for data disclosures. We concur with civil society that a repository should be housed at an international financial institution with the credibility, capacity, and experience to maintain a permanent facility.
The Institute of International Finance is the global association of the financial industry, with close to 450 members from more than 70 countries. Its mission is to support the financial industry in the prudent management of risks; to develop sound industry practices; and to advocate for regulatory, financial and economic policies that are in the broad interests of its members and foster global financial stability and sustainable economic growth. IIF members include commercial and investment banks, asset managers, insurance companies, sovereign wealth funds, hedge funds, central banks and development banks.