This report was originally published by EURODAD
This Charter on Responsible Financing has been written by the European Network on Debt and Development (Eurodad). It outlines the essential components of a responsible loan and recommends that lenders and borrowers sign up to the standards advocated in the Eurodad Charter.
The history of the sovereign debt crisis since the 1980s has shown that loans have often been extended to developing nations with insufficient regard for the rule of law or citizens’ welfare. In many cases, loans were used to buy political support or to fund non-viable projects. Citizens around the world demand the productive and transparent use of financial resources. To prevent repeated rounds of unsustainable and irresponsible lending and borrowing, it is essential to reform current approaches to sovereign lending. We therefore demand that lenders and borrowers sign-up and adhere to the following EURODAD Charter on Responsible Financing.