Published on: 2026-06-16
Source: United Nations – United Nations –
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The independent UN expert on foreign debt and human rights, Attiya Waris, noted the high significance of recent debates in the New York State Legislature on the draft law concerning the protection of taxpayers and the prevention of international debt crises. Although the bill was ultimately not passed, the very discussion of this issue, according to the expert, became a “substantial step forward.”
The project was aimed at solving the key problems in the mechanism of restructuring sovereign debt, including the fair distribution of the burden and the role of private creditors. It was supposed to oblige private creditors holding sovereign debt obligations concluded in accordance with the legislation of the State of New York to participate in an international initiative to ease the debt burden on par with governments. Since most of the world’s private and bank debt is regulated by the legislation of the State of New York, this state has exclusive jurisdiction over such agreements.
Varis emphasized that unsustainable debt obligations continue to limit the ability of many governments to finance social services and to ensure the economic and social rights of the population.
“When restructuring is delayed or unfairly conducted, the most vulnerable segments of the population suffer the most,” stated the UN special rapporteur.
Varis reminded of the risk associated with the litigation strategies of some investors working with troubled debt assets, which can undermine restructuring efforts and cause disproportionate harm to developing economies. At the same time, she acknowledged the existence of different viewpoints expressed in the legislature, including concerns about the condition of financial markets and the role of New York as a global financial center.
“The variety of positions reflects the complexity of the issue,” Varis noted, calling to continue the dialogue between lawmakers, financial structures, and civil society.
“This conversation should not end,” he emphasized. “For the formation of a fairer and more sustainable international financial system, constant interaction is necessary.”
Special rapporteurs are independent experts appointed by the UN Human Rights Council. They are not UN staff members and do not receive a salary for their work. The experts act in a personal capacity and do not represent any government or organization.
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