A/HRC/20/23 61. If the debtor State has been granted debt relief through an international debt relief mechanism (such as the Heavily Indebted Poor Countries’ Initiative), the amount of debt recoverable by the litigating creditor should not exceed that recovered by other creditors. 62. Creditors should not sell sovereign debt on the secondary market to creditors that have previously refused to participate in agreed debt restructuring. Sharing risk of the loan 63. In order to help balance exchange rate risk, lenders should offer the possibility of denominating all or part of the loan in the Borrower State’s local currency. 64. In order to help balance output or trade risk, lenders should offer the possibility of indexing loan repayments to rates of economic and/or export growth. B. Debt sustainability Debt sustainability assessment 65. Debt sustainability assessments must not be limited to economic considerations (the debtor State’s economic growth prospects and ability to service their debt obligations) but must also take into consideration the impact of debt burdens on a country’s ability to achieve the Millennium Development Goals and to create the conditions for the realization of all human rights. 66. Such assessments must be undertaken by an independent body as contemplated in paragraph 82(b) of these principles. Public audits of debt and lending portfolios 67. Borrower States should conduct transparent and participatory periodic audits of their debt portfolios in accordance with national legislation designed for this purpose. The findings of such audits must be publicly disclosed to ensure transparency and accountability in the management of the State’s external debt stock and should inform future borrowing decisions by the State as well as its debt strategy, development expenditure and human rights action plans. 68. Public audits of debt portfolios should assess the loan contraction process, use of loan funds and the impact of debt on development and the realization of human rights. 69. Lenders should similarly conduct periodic public audits of their lending portfolios to assess compliance with the objectives of their foreign development cooperation or lending policies, the development priorities of Borrower States and universally recognized human rights standards. The findings of such audits should be publicly disclosed. 70. In the case of borrower or lender States, public audits should be conducted by institutions or entities as may be provided for by national legislation, including national legislatures, national human rights institutions, debt management offices, or any other independent Government agency or office. Contingent liabilities 71. Borrower States and lenders should consider the impact that contingent liabilities (including debts generated by or related to export credits or foreign investments and debt obligations arising from public-private partnerships) have on the borrower government’s financial position when making borrowing or lending decisions or assessing the sustainability of the debts of Borrower States. 18