Debt reduction, either through stock of debt reduction or debt service reduction based on a concessional rescheduling, will continue to be considered only in exceptional cases.

Debt reduction is not fatal.

First, Greek debt reduction was postponed for too long.

Initially, to facilitate debt reduction, bondholders would face another haircut.

Secondly, debt cancellation and reduction should be extended and intensified.

21. Stresses that debt relief should contribute to development objectives, including poverty reduction, and in this regard urges countries to direct those resources freed through debt relief, in particular through debt cancellation and reduction, towards these objectives

Fifth, debt burdens that cannot be eased by growth, savings, or inflation must be rendered sustainable through orderly debt restructuring, debt reduction, and conversion of debt into equity.

So, as austerity undermines growth, debt reduction will be marginal at best.

But neither improved competitiveness, nor reduction of total debt, can be achieved overnight.

Multilateral lenders have long understood the importance of debt relief to poverty reduction.

Undoubtedly, debt reduction and increased aid have a role to play in this process.

Chief among these changes has been the adoption, in most countries, of flexible exchange rates and reduction of external debt, particularly government debt.

Despite significantly lower debt GDP ratios and continuous debt restructuring, they eventually needed the large debt reduction that came with the issuance of Brady bonds to achieve some breathing room.

A better solution would have been debt reduction at an earlier stage of the crisis.

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.

a rapid reduction of insolvent households debt burden, preceded by a temporary freeze on all foreclosures

External debt posed a pressing problem and restricted the Government's ability to implement poverty reduction programmes.

The expenditure cuts mandated by the outcome of the debt ceiling debate will reduce economic activity, thereby undermining growth and making debt reduction even more difficult.

Countries departing for the northern euro should make a one time contribution to these debt reduction efforts.

Fifth, debt burdens that cannot be eased by growth, savings, or inflation must be rendered sustainable through orderly debt restructuring, debt reduction, and conversion of debt into equity. This needs to be carried out for insolvent governments, households, and financial institutions alike.

The G 20 will not achieve growth and stability without a renewed focus on long term debt reduction.

Total debt relief accorded to the 27 countries that have reached either the decision point or the completion point, together with other debt relief measures, represents a two thirds reduction in these countries' overall debt stock.

The appropriate amount of debt reduction should be measured against the explicit development objectives defined by the NEPAD process.

a An option was included to convert US 30 year bond into a US 12 year bond with debt reduction.

Criteria for debt relief should be focused on the effective utilization of the resources released for poverty reduction and growth.

Saddled with debt, reparations and oil capacity constraints, and with the security situation highly uncertain, Iraq has yet to achieve self sustaining economic growth despite the reduction in Paris Club debt.

But fiscal discipline must be accompanied by policies that promote growth, without which balanced budgets and debt reduction cannot be achieved.

Reduction of debt service burdens can release domestic resources that can be allocated to slum upgrading or other urban developing activities.

But that simply shifts leverage to the public sector, with any reduction in the ratio of private debt to GDP more than matched by an increase in the public debt ratio witness the Irish and Spanish governments high and rising debt burdens.

But hints of new fiscal imprudence or of backsliding on long term debt consolidation and reduction can drive up borrowing costs dramatically.

For the Italian state, interest rate convergence brought a medium term reduction in debt service payments of up to 6 of GDP.

A reduction of domestic public debt could also help to boost growth by freeing resources for the productive sectors of the economy.

Urges that the approach in the debt settlement should cover all types of debt, including multilateral debt, and all indebted developing countries, and incorporate measures aimed at a once and for all reduction arrangement to reduce their debt burden to a scale that would allow them to resume their economic growth and development.

Worse, the debt that states raise abroad is usually denominated in a currency whose value they cannot control. So a gradual, invisible reduction in the debt burden by debasing the currency is rarely an option.

After a suitable period, the participating countries would enter into debt reduction programs tailored in a way that does not jeopardize their growth.

Twenty years ago, Poland negotiated a reduction in its debt and came off better than Hungary, which was keen to protect its reputation.

The previous temporary tax cuts in 2008 and 2009 appear to have gone largely into saving and debt reduction rather than increased spending.

Since 1999, the poverty reduction strategy papers have become the overall framework for lending, debt relief and development cooperation in low income countries.

In particular, the EFA could establish a Debt Reduction Fund a modified form of the European Debt Redemption Pact that was proposed by Merkel s Council of Economic Advisers and endorsed by Germany s Social Democrats and Greens.

If the sine qua non of recovery via austerity is the stabilization and reduction of debt, the cynics case appears to have been made.

The task force agreed that poverty reduction and promotion and protection of human rights should be key considerations in finding solutions for debt sustainability.

In short, the Argentine model of debt reduction in the 2000 s has collapsed as completely as its borrowing model in the 1990 s did.

It ended when the highest EU authority, the European Council, officially recognized in late July that Greece does need a reduction in its debt obligations.

It is deficit reduction, not debt, that is profligate, because it implies wastage of available human and physical capital, quite apart from the resulting misery.

There is a real need for significant debt reduction or restructuring, not only for the least developed countries but also for middle income developing countries.