Washington D.C., September 25, 2011 —

Statement by the Co-Chairmen on behalf of the Group of Trustees

• Mr.Jean-ClaudeTrichet, President, European Central Bank
• Mr. Zhou Xiaochuan, Governor, People’s Bank of China
• Mr. Agustín Guillermo Carstens, Governor, Banco de México
• Mr. Toshihiko Fukui, President, the Canon Institute for Global Studies and Former Governor of the Bank of Japan

Members of the Group of Trustees of the Principles for Stable Capital Flows and Fair Debt Restructuring meet once a year to review the progress being made on the implementation of The Principles within the framework of the international financial architecture.

The Trustees took note of the comprehensive report provided to them by the Principles Consultative Group (PCG), which includes senior officials from emerging market economies as well as senior bankers and investors, and welcomed the PCG’s effectiveness in providing feedback to a range of authorities over the last 12 months on the implementation of the Principles, policy options and adjustment needs. The Trustees at their meeting noted the continuing strong net flows of private capital to emerging markets, driven by positive growth prospects in these economies and interest rate differentials versus those in mature economies. However, there remains the need for heightened vigilance among certain emerging market countries to cope with inflationary pressures in order to underpin stable capital flows and continued growth in emerging markets.

The Trustees reaffirmed their confidence in the value of the Principles, which incorporate voluntary, market-based, flexible guidelines for the behavior of sovereign debtors and private creditors with a view to promoting and maintaining stable private capital flows and supporting financial stability and sustainable growth. The Trustees underscored the usefulness of increased reliance on the underlying core guidelines of the Principles in promoting crisis prevention through the adoption of strong policies and a more open, systematic dialogue with investors and data disclosure.

The Trustees noted that the Principles have served as a reference framework for the formulation of operating modalities in dealing with private sector investors in the new institutional arrangements set up by the Euro Area to handle debt management difficulties. The Trustees were appreciative of the IIF’s role in promoting the implementation of the Principles in addressing sovereign debt problems. They noted that key elements of the Principles have been applied in the process of negotiating the July 21, 2011 support package for Greece. This experience also affirms the validity of the Principles in the context of today’s sovereign debt challenges.

As Trustees reviewed the application of the Principles, they emphasized that countries with strong policy performance and active investor relations programs have clearly done well relative to others during this period of market turbulence. They stressed the importance of convincing actions where needed to address fiscal deficits and to put public debt firmly on a sustainable path

The Trustees noted that since the promulgation of the Principles in 2004, a growing number of sovereign borrowers have recognized the importance of active investor relations programs and strong data dissemination practices as tools to strengthen their relationship with the investor community. The PCG reported to the Group of Trustees that the number of countries with formal investor relations programs in place increased from 5 in 2004 to 15 as of September 2011.

The 2011 Meeting of the Group of Trustees was the farewell meeting of Mr. Jean-Claude Trichet, as Co-Chair of the Group of Trustees of the Principles. Mr. Zhou Xiaochuan, Governor, People’s Bank of China said, “We all have benefited from Jean-Claude Trichet’s expertise and guidance in the implementation of the Principles. I want to thank Jean-Claude Trichet on behalf of the Group for his steadfast leadership in advancing support for the Principles.”

Mr. Agustin Carstens, Governor of the Banco de México added, “Jean-Claude Trichet provided important vision by conceiving a new ‘code of conduct’ for managing sovereign debt crises in 2002 which became reality as the Principles. He has made a major contribution through his long personal involvement in developing and promoting the establishment of the Principles in 2004 and their effective implementation thereafter. The Principles have contributed significantly to safeguarding global financial stability.”

Mr. Toshihiko Fukui, President of the Canon Institute for Global Studies and former Governor of the Bank of Japan, remarked that Mr. Trichet’s “Original vision and leading role at the ECB have brought invaluable clarity, initiative and strength to the Principles. He has endowed them with a credibility and voice that has truly shaped the international financial architecture on a progressive course and in a positive light.”