A/HRC/20/23 organizations, United Nations agencies, funds and programmes, regional economic commissions, international and regional financial institutions and non-governmental organizations, on the draft guidelines and to present a draft to the Council. The present guiding principles are the outcome of an extensive and inclusive consultation process. The principles are based on the recognition of States’ existing obligations to respect, protect and fulfil all human rights, the obligations of international financial institutions and private corporations to respect human rights, as well as the need for a comprehensive solution to the sovereign debt problems of developing countries that is anchored to a human rights-based framework. Section I – Scope and purpose 1. These guiding principles are designed to assist States and all relevant actors including private and public, national and international financial institutions, bilateral lenders and organized groups of bondholders in the conduct of their respective activities and pursuit of their respective interests relating to external debt. 2. The overriding aim of these principles is to balance a debtor and creditor State’s contractual obligations arising from external debt arrangements and both debtor and creditor’s international legal obligations to respect, protect and fulfil all human rights, particularly economic, social and cultural rights. 3. These principles apply to the lending and borrowing decisions of States and other actors such as international financial institutions and private institutions as appropriate, the negotiation and execution of loan agreements or other debt instruments, the utilization of external loan funds, debt repayments, the renegotiation and restructuring of external debt, the provision of debt relief when appropriate and to all policies, strategies and activities related thereto. The principles recognize the contingent liabilities which can arise for a State from external borrowing and lending between private actors. 4. For the purposes of these principles, external (or foreign debt) refers to an obligation (including monetary obligation) created under a contractual agreement and owed by a State to a non-resident lender which may either be an international financial institution, a bilateral or multilateral lender, a private financial institution or a bondholder, or is subject to foreign law. It includes: (i) loans, that is, advances of funds to the debtor by the lender on the basis of an undertaking that the borrower will repay the funds at some future point (including deposits, bonds, debentures, commercial loans and buyer’s credits); and (ii) suppliers’ credits, that is, contracts whereby the supplier allows the customer to defer payment until some time after the date on which the goods are delivered or the services are provided. The aggregate of a State’s outstanding external debts is referred to as its external debt stock. 5. These principles reflect and are consistent with international human rights standards. They apply existing human rights standards as they pertain to problems or issues occasioned by the external indebtedness of States and related policies. Section II – Foundational principles Ensuring the primacy of human rights 6. All States, whether acting individually or collectively (including through international and regional organizations of which they are members), have the obligations to respect, protect and fulfil human rights. They should ensure that any and all of their activities concerning their lending and borrowing decisions, those of international or 11