To overcome these obstacles, a eurozone debt mutualization scheme must satisfy three crucial requirements.

In matters of foreign debt, Spain wants to go beyond the requirements set by international agreements.

This is a mistake. The European Commission should have introduced capital requirements on banks holdings of public debt.

Higher equity capital requirements, for example, require banks to fund themselves with relatively more equity and relatively less debt.

The bonds can be structured to mature (i.e., come due) over 25 years, resulting in level annual debt service requirements.

Higher and pro cyclical equity capital requirements on banks, combined with a requirement to raise contingent long term debt debt that converts into equity in a crisis is a better way forward.

A debt pooling scheme that satisfies the requirements outlined here would signal that the eurozone member countries are serious about sticking together.

They could buy bad loans from lenders and forgive part of the principal payable by borrowers, simultaneously reducing lenders collateral requirements and borrowers debt overhang.

Another priority is to ensure that low income countries that are striving to meet the MDG s, and which have large financing requirements, avoid a new spiral of indebtedness. The gains from MDRI debt relief will amount to precious little if low income countries emerge from their debt burdens only to start the cycle anew by amassing fresh debt.

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

However, in cases where loans are still needed to fully finance the development requirements, the grant element of these loans may be linked principally to debtors' export prospects, as external debt can be sustainable only if debtor countries can earn enough foreign exchange to service their debt.

Debt sustainability and debt relief

There are 15 management requirements and 10 technical requirements.

A new portfolio of regulations would increase banks capital requirements, limit the debt that they could take on, and establish a Consumer Financial Protection Agency to protect naïve borrowers against predatory lending.

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

Manage requirements Always keep in mind the requirements set by users.

(d) urge the international financial institutions and developed country creditors to relate debt sustainability criteria directly to the financing requirements for achieving the internationally agreed development goals including the MDGs and other development goals

Information requirements

Form requirements

Staffing requirements

Resource requirements

formal requirements

Resource requirements

Reporting Requirements

Resource requirements

Participation requirements

Participation requirements

Resource requirements

Bidding requirements

Resource requirements

Resource requirements

Resource requirements

Resource requirements

Unsustainable private debt problems must be resolved by defaults, debt reductions, and conversion of debt into equity.

The best known tools for this are margin requirements and minimum capital requirements.

Table 30.10 Resource requirements total requirements for the Joint Inspection Unit (full budget)

Additional resource requirements

Human resource requirements

Estimated additional requirements

8120 Marking requirements

8130 Labelling requirements

8140 Packaging requirements

8160 Information requirements

Form requirements (continued)

Resource requirements 2,056,500