A/HRC/33/54 as undertaking litigation against States in debt distress. It is a good practice to limit the value of the claim to the discounted price originally paid by the creditor. In addition, States should ensure that vulture funds domiciled in their territory or operating in their jurisdiction respect human rights throughout their operations. 87 Domestic regulations should also recognize States’ extraterritorial obligation to fulfil economic, social and cultural rights. 88 77. National laws should provide the basis for regulating the behaviour of abusive noncooperative creditors in restructuring processes by providing that they cannot enjoy better treatment than those that are acting in good faith.89 Guarantees should be provided that the amount of debt recoverable by a vulture fund cannot exceed that recovered by other, cooperative creditors.90 78. Steps should be taken to regulate the trade of sovereign debt on the secondary market and to guarantee transparency. In the absence of an international restructuring mechanism, all efforts must be directed towards achieving a negotiated settlement. 91 79. Finally, States should assess whether servicing debt to vulture funds would result in derogation from their minimum core obligations with respect to economic, social and cultural rights. Debt sustainability analysis should include an evaluation of the level of debt a country can carry without undermining its capacity to fulfil its human rights obligations and the realization of the right to development.92 Management of vulture funds 80. The Guiding Principles on Business and Human Rights intend to foster respect for human rights among States, business enterprises, financial institutions and other actors. They apply to commercial entities operating in the financial sector. Vulture funds thus also have a responsibility to respect human rights. 93 This specifically includes the responsibility to “avoid causing or contributing to adverse human rights impacts through their own activities, and address such impacts when they occur”. 94 81. The responsibility to respect human rights does not require a direct link of causality between the activities of vulture funds and their negative impact.95 Vulture funds bear a duty of due diligence, which entails identifying, preventing, mitigating and accounting for human rights impacts. In addition, vulture funds should put in place policies and systems to “know and show” that they respect human rights throughout all their activities.96 This 87 88 89 90 91 92 93 94 95 96 20 Guiding Principles on Business and Human Rights: Implementing the United Nations “Protect, Respect and Remedy” Framework (A/HRC/17/31, annex), principle 3. On 26 June 2014, the Human Rights Council adopted resolution 26/9 on the elaboration of an international legally binding instrument on transnational corporations and other business enterprises with respect to human rights. See Maastricht Principles on Extraterritorial Obligations of States in the Area of Economic, Social and Cultural Rights (2011), principle 32. This principle encompasses the basic requirements of fairness, honesty and trustworthiness. UNCTAD, Sovereign Debt Workouts, p. 22. See also UNCTAD, Principles on Promoting Responsible Sovereign Lending and Borrowing (2012). Guiding principles on foreign debt and human rights, principle 61. Ibid., principle 59. Ibid., principles 8, 48 and 65. Ibid., principle 11. Ibid., principle 13 (a). Ibid., principle17. See also OHCHR, reply to the request of the Chair of the Organization for Economic Cooperation and Development Working Party on Responsible Business Conduct on the application of the Guiding Principles to the financial sector, 27 November 2013. Available from www.ohchr.org/Documents/Issues/Business/LetterOECD.pdf. Guiding Principles on Business and Human Rights, principle 15.