This Borrowing Charter contains Principles and Guidelines on sovereign financial borrowing. It seeks to guide and inform sovereign states borrowing so as to improve the current weak administrative, institutional and legal procedures for loan contraction and public debt management systems that have contributed to the build-up of unsustainable debts. The Principles and Guidelines are based on various findings from AFRODAD debt researches over the years in SSA.
AFRODAD therefore urges SSA countries as borrowers to sign-up and implement the principles and guidelines in the Charter, to ensure efficient use of borrowed funds, prevention of a recurrence of the debt crisis and make governments accountable to its citizens.
The Charter contains the following principles and guidelines:
1 Adherence to prudent public borrowing and debt management practices
2 Existence of predictable rules and regulations
3 Coordinated and coherent structures and obligations
4 Existence of an autonomous Debt Management Office
5 Public participation, inclusivity and information disclosure
6 Respect for human and people’s ecological rights
7 Mutual respect and equal partnership with lenders and international financers