Debt sustainability and debt relief

But the eurozone debt crisis has distinctive features.

Debt sustainability is also affected by vulnerability to external shocks.

Of course, this may not be the breaking point beyond which the debt burden becomes unsustainable.

In the end, they are different methods of forcing current and future generations to shoulder the burden of accumulated debt.

7. Stresses that debt sustainability depends upon a confluence of many factors at the international and national levels, underscores that no single indicator should be used to make definitive judgements about debt sustainability, and emphasizes that country circumstances should be taken into account

Most of the big Latin American debtors took extraordinary pains to avoid an explicit default.

33 UNCTAD is implementing a project on development strategy and debt sustainability, which also integrates aspects of debt management.

To move forward, the Secretary General proposed that debt sustainability should be redefined as the level of debt that allowed a country to achieve the Millennium Development Goals and reach 2015 without an increase in its debt ratios.

However, much more needed to be done to assist countries that had reached the completion point but continued to experience severe debt sustainability and debt servicing problems.

3. Also emphasizes that creditors and debtors must share responsibility for preventing unsustainable debt situations

Emphasizes that creditors and debtors must share responsibility for preventing unsustainable debt situations

In this regard, the task force deems it necessary to define debt sustainability within a State context with a view to attaining a level of debt that allows countries to achieve the Goals and avoid an increase in debt ratios by 2015.

In the area of debt relief, much progress has been made in the framework of the Heavily Indebted Poor Countries (HIPC) Initiative, but a bit more remains to be done to achieve the sustainability of debt, which is equivalent to 150 per cent of exports.

If governments that have already tapped out their debt bearing capacity now issued more debt or money or guarantees, they would deal a mortal blow to confidence.

4. Emphasizes that creditors and debtors must share responsibility for preventing unsustainable debt situations

Fiscal expansion is always risky, as it adds to debt and raises dangers later. But, given where we are, the benefits exceed the costs in countries with sustainable debt.

While some of our countries have benefited from debt relief strategies including the Highly Indebted Poor Countries Initiative that has not as yet resulted in debt sustainability in the region.

Nevertheless, the markets are clearly signaling growing doubt about whether Spain and Italy will be willing to bear their debt burden.

3. Also emphasizes that creditors and debtors must share responsibility for preventing unsustainable debt situations

Europe could re engineer the eurozone to enable debt sustainability and high economic growth.

Waiting to restructure unsustainable debts would only lead to disorderly workouts and severe haircuts for some private creditors.

But very little was done to strengthen the financial system s ability to withstand a default of any significant magnitude.

Invite the Bretton Woods institutions to consider the issue of debt sustainability and the implications of an HIPC initiative for Haiti.

Emphasizing the important role that private sector creditors play in debt relief and debt sustainability,

Germany and the ECB are relying on large scale liquidity to buy time to allow the adjustments necessary to restore growth and debt sustainability.

Such initiatives should include efforts by IMF and the World Bank to develop a debt sustainability framework for low income countries.

For many heavily indebted non HIPC and middle income countries, debt sustainability will require significantly more debt reduction or restructuring than has yet been proposed.

To move forward, we should redefine debt sustainability as the level of debt that allows a country to achieve the Millennium Development Goals and reach 2015 without an increase in debt ratios.

Invites the Bretton Woods institutions to consider the issue of debt sustainability and the implications of the Highly Indebted Poor Countries (HIPC) initiative for Haiti

Are security and political interests so overwhelming that they justify assuming large and unlimited liabilities incurred by political systems over which they have no control?

Convinced that enhanced market access for goods and services of export interest to developing countries contributes significantly to debt sustainability in those countries,

Convinced that enhanced market access for goods and services of export interest to developing countries contributes significantly to debt sustainability in those countries,

In June 2004, the Evian approach was applied to examine the debt of Gabon, and the Debt Sustainability Analysis concluded that Gabon's debt is sustainable in the short term.

Recognizing that commodity prices are an important element for heavily indebted poor countries that are dependent on commodities for maintaining long term debt sustainability,

Convinced that enhanced market access for goods and services of export interest to developing countries contributes significantly to debt sustainability in developing countries,

Convinced that enhanced market access for goods and services of export interest to developing countries contributes significantly to debt sustainability in those countries,

Beyond the Millennium Development Goals, the long term sustainability of debt depends on the growth and export prospects of debtor countries and, hence, on their success in overcoming structural development problems.

Thus, the Paris Club's Evian approach relies on IMF Debt Sustainability Analysis for determining the terms of debt reschedulings.

Acknowledged that developing country efforts to achieve and maintain debt sustainability should be supported by international assistance in the area of debt management and, where appropriate, by consideration of the provision of concessional finance and modification, including reduction of aid conditionalities

And the cost of carrying the extra debt incurred is extraordinarily low 12 billion a year of extra taxes would be enough to finance the fiscal stimulus program at current interest rates.

This should not be surprising, since many factors besides international debt flows can cause domestic banks to throw caution to the wind and start lending recklessly.

We hope that the G8 can help finalize these arrangements, and can help us ensure that the costs of debt relief are shared among all creditors, including those from the private sector.

Doing enough would require reducing annual budget deficits by 0.5 of GDP every year during the coming decade just to improve the sustainability of government debt on average.

Greece is also the canary in the coal mine for the euro zone, where all the PIIGS economies (Portugal, Italy, Ireland, Greece, and Spain) suffer from the twin problems of public debt sustainability and external debt sustainability.