A/HRC/RES/55/6 in the midst of a deepened crisis due to the coronavirus disease (COVID-19) pandemic, including a number of least developed countries and small island developing States and some developed countries, Mindful of the role, mandate and activities of other United Nations agencies, funds and programmes in dealing with the issues of foreign debt and international financial obligations, Reaffirming that the increasing debt burden faced by the most indebted developing countries, in particular the least developed countries, is unsustainable and constitutes one of the principal obstacles to achieving progress in people-centred sustainable development and poverty eradication, and that, for many developing and some developed countries, excessive debt servicing has severely constrained their capacity to promote social development and to provide basic services to create the conditions for the realization of economic, social and cultural rights, Expressing its concern about the impact of delays in debt restructuring, higher excessive borrowing costs, surcharge policies and the lack of an international legal framework on sovereign debt resolution on the realization of economic, social, cultural and other human rights, including the right to development, and that, despite repeated rescheduling of debt, developing countries continue to pay more in debt servicing each year than the actual amount they receive in official development assistance, Recognizing that States have an obligation to respect and protect human rights, even in times of economic and financial crisis or a global pandemic, and to ensure that their policies and measures do not result in impermissible retrogression in the realization of human rights, as recognized in relevant international human rights instruments, and acknowledging that the guiding principles on human rights impact assessments of economic reforms 1 constitute an important reference for States in that regard, Recognizing also the sovereign right of any State to restructure its sovereign debt, which should not be frustrated or impeded by any measure emanating from another State, international financial institution or private creditor, Recognizing further that illicit financial flows, including tax evasion by high networth individuals and commercial tax evasion and avoidance through trade misinvoicing and transfer mispricing by transnational corporations, contribute to the build-up of unsustainable debt, as Governments lacking domestic revenue may resort to external borrowing, Emphasizing that inequality continues to increase worldwide, and that it often contributes to social exclusion and the marginalization of certain groups and individuals, Expressing deep concern at estimates that the COVID-19 pandemic has ended global progress in poverty reduction, and noting that without an acceleration of progress toward the achievement of the 17 Sustainable Development Goals of the 2030 Agenda for Sustainable Development, the world is destined to face continued poverty and other challenges, in particular in the developing countries, with statistics indicating that an estimated 575 million people will be living in extreme poverty by 2030, Recognizing that, together with the health crisis associated with the COVID-19 pandemic and other systemic crises, the global economy is being confronted with a rapidly unfolding, synchronized and severe economic recession affecting both developed and developing economies and all continents at the same time, and emphasizing the need to create the economic and social conditions that will enable States to realize the right to development and to face future crises and pandemics, Recognizing also the need for reform of the global financial architecture, including reform of credit rating agencies, and that credit rating agencies should play a role in debt crisis prevention, and emphasizing that a more effective international financial architecture is required now more than ever in order to respond to the socioeconomic fallout resulting from the COVID-19 pandemic and to promote progress in the realization of all human rights, 1 2 A/HRC/40/57.

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