Such steps include substantial debt reduction and the streamlining of debt relief procedures and requirements.

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.

On the question of debt, he welcomed the extension of the HIPC Initiative and urged all donors to shoulder their fair share of the financial requirements, including 100 per cent bilateral debt cancellation.

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

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

Debt sustainability and debt relief

B. External debt and debt relief

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.

In Africa, as in other parts of the world, the debt problem and resource requirements are inextricably linked to the capacity for capital accumulation and growth.

Official development assistance and private investment flows are complementary inputs for development and both would have to be enhanced on account of basic developmental requirements, the cost of environmental protection and the requirements of a growth oriented management of debt.

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

Current apportionment Additional requirements Total requirements

Debt

Such a debt strategy should include debt cancellation.

Debt reduction should cover a greater proportion of the debt, in certain cases the total debt.

The debt strategy should include, among other things, a drastic reduction of debt and debt servicing.

B. External debt and debt relief . 27 32 10

Innovative forms of debt relief, including debt for equity swaps, debt for social development swaps, and debt for environment swaps, could be widely utilized.

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.

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

The resolution, moreover, calls for the treatment of multilateral debt to alleviate debt and debt service burdens.

Requirements

Requirements

External debt

External debt

Debt relief

External debt

What debt?

The country simply cannot keep on piling debt upon debt.

We are not asking for debt forgiveness or debt cancellation.

Total concessional debt as a percentage of total external debt

But this is debt. 80 million of debt right here.

The debt restructuring measures had dealt primarily with commercial debt and debt servicing obligations to official bilateral creditors.

There are 15 management requirements and 10 technical requirements.

The debt relief measures had not benefited a large number of countries overburdened with debt repayment and debt servicing.

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

Debt to private creditors as a percentage of total external debt

Multilateral debt accounted for 97 per cent of the total debt.

No formal debt restructuring existed for debt owed to multilateral institutions.

So this leads to increasing debt, increasing debt right over here.