Governments may be able to mobilize funding through debt swaps, where donors exchange debt for local currency investment in environmental protection, such as waste water treatment.

Money market funds from the United States are returning, albeit cautiously, to resume funding of European bank debt.

Indeed, this financial repression tax on domestic savers remains a huge opaque source of funding for India s debt ridden government.

These are highly leveraged businesses, typically funding their balance sheets with no more than 5 equity (and thus 95 debt).

Such new funding needs to be non debt creating, additional to existing development aid flows and channelled directly to recipient countries and, where appropriate, should utilize public private partnerships seeded by donor funding.

The European Central Bank has provided a great deal of emergency liquidity funding to banks, which they use to buy even more government debt.

Banks themselves, however, are the heaviest borrowers, routinely funding more than 90 and sometimes more than 95 of their investments by taking on debt.

But there is an important caveat, which has largely been ignored in public discussions if this funding is senior to private debt (as IMF funding typically is), it will be harder for these countries to regain access to markets.

A cast iron mechanism to ensure that the debt build up does not continue forever is appealing as a way of withstanding increasingly fraught competition for funding.

Ironically, today s pain stems from one of the great successes that emerging economies have achieved the reduction of foreign currency funding in favor of local currency debt.

Banks capital simply refers to their equity funding how much of their liabilities are owned by shareholders rather than being owed to creditors as some form of debt.

The new Basel III package of global banking reforms may increase funding costs further for some borrowers, while reducing the availability of finance, especially for longer term debt.

Funding modalities voluntary funding, assessed contributions and negotiated replenishments

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

Funding

Extrabudgetary funding

Programme funding

Funding targets

Debt sustainability and debt relief

The search for additional and more stable funding to meet the MDG s has led to various proposals for innovative financing mechanisms and debt relief, in particular by British Chancellor of the Exchequer Gordon Brown.

The projects listed above will require funding. Additional funding sources might be required.

Appropriation and funding

Funding and Resources

Health care funding

Sources of funding

Potential funding sources

V. Extrabudgetary funding

Possible funding arrangements

Building on this momentum, the campaigns for debt relief, trade reform, and increasing aid to poor countries have gained traction. Yet, while pledges to increase development assistance have soared, short term funding is woefully inadequate.

This does not mean that official funding should be junior to private debt in any restructuring, for that would require substantially more loss bearing capacity from the official sector capacity that is probably not available.

More debt relief encompassing more countries and more debt (including bilateral debt) is needed.

Funding Congress has consistently provided less funding for the program than the president has requested.

Demand led funding' provided via parents will replace supply led funding' by the municipal authorities.

Sources of funding 7

Innovative approaches to funding

Table 1 Funding cycle

Item 3 Funding commitments

The proposed funding approach

Funding is requested to

Funding is requested to

Programme budgets and funding

Overall trends in funding

Defining the funding requirements

Multi year funding framework

There were 24 cases of pooled funding reported, 12 cases of pass through funding and 106 of parallel funding (in some cases, more than one modality was used).