We heard a strong welcome for recent progress on aid and debt, although many members expect further action on debt, more quickly and in more countries.

But there were also calls for action on the issue of debt in all heavily indebted African countries.

Such contracts should also include collective action clauses, which make it impossible for vulture funds to hold up debt restructuring.

At a time when new sovereign debt restructurings are distinct possibilities, such action is crucial.

At their eleventh meeting (Maputo, March 2005), the HIPC ministers called for help in building their capacity to analyse debt sustainability and create a framework for action.

Indeed, the agreements have been used to challenge government actions ranging from debt restructuring to affirmative action.

Options for lower debt burdens on Governments of heavily indebted developing countries include debt cancellation and debt swaps for sustainable development.

The report calls for a major scaling up of investments in development, as well as for stronger and more effective international action on debt relief, trade and science and technology.

The demand for debt repayment confronts the philosophy of debt forgiveness.

Debt relief, debt swaps or debt cancellation could offer important means for mobilizing resources for accelerating progress towards the water and sanitation goals.

Action on debt relief and trade reform to benefit low income countries should also reflect the Millennium Development Goals.

But, while debt forgiveness benefits holders of both equity and debt, debt holders don t voluntarily agree to it for two reasons.

A New Deal for Debt Overhangs?

For farmers, this means deeper debt.

Need for broader external debt relief

Yet when it came to US action, the most that the US could offer financially was slight debt relief for Egypt ( 1 billion), scant loan guarantees ( 1 billion), and some insurance coverage for private investments.

Instead, they focused exclusively on US foreign debt, ignoring household debt (mortgage and consumer debt), public debt, business debt, and financial debt.

The link between sovereign debt and bank debt has to be broken once and for all.

Part and parcel of international support for action on national priorities includes meaningful measures on means for implementation, in particular those related to commitments made but not honoured, reform of the trade regime and debt relief.

Action on debt relief vital because it provides the certainty needed to hire the doctors and the teachers, and to buy the drugs.

A similar pattern holds for public debt.

Calls for immediate debt restructuring went unheeded.

In addition to sustainable debt management, urgent action needs to be taken in order to do away with agricultural subsidies, in particular cotton subsidies.

With the onset of the European sovereign debt crisis in 2010, banks appetite for public debt fell again.

But the principle of debt forgiveness clearly has applications for public debt as well, especially in the eurozone.

Alternatively, the debt holders can agree to reduce the face value of debt, in exchange for some warrants.

For this to happen, there must be urgent action on various international commitments and sustained global partnership for providing resources, trade opportunities and debt relief measures to least developed countries, taking into account their special needs and vulnerability.

Proposals for action

Recommendations for action

Recommendations for Action

UNCTAD should continue its work in the area of debt, including the study of the application of debt for equity swaps for development.

Debt sustainability and debt relief

China s non financial corporate debt accounts for roughly 62 of total debt 30 40 higher than in other countries.

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

Concerned that many developing countries continue to struggle for a durable solution to their serious debt problems, where continuing debt and debt servicing obligations adversely affect their sustainable development,

The group called for special efforts by the international community to help LDCs meet their development targets in the light of the Brussels Programme of Action, particularly through aid, FDI, market access and debt relief.

In addition to measures for the HIPC, steps were being taken to implement specific debt restructuring methods, such as the Evian approach adopted by Paris Club participants and the collective action clauses encouraged by IMF.

Nonetheless, Argentina s latest debt trauma shows that the global system for sovereign debt workouts remains badly in need of repair.

Finally, GDP indexed bonds and other tools for dealing sensibly with unsustainable debt could be applied exclusively to member states debt not covered by the program and in line with international best practices for sovereign debt management.

Affirmative Action for Europe

A framework for action

Support for national action

With Recommendations for Action

For action against corruption

First, Greek debt reduction was postponed for too long.