Debt sustainability and debt relief

Oral statements in plenary on CTT and debt sustainability.

Emphasizing the important role that private sector creditors play in debt relief and debt sustainability,

This, too, complicates the public debt dynamics and impedes the restoration of public debt sustainability.

This would greatly improve the sustainability of these countries debt.

Debt sustainability is also affected by vulnerability to external shocks.

Sustainability of public debt has replaced sustainability of private debt as the biggest threat to financial stability, and the focus of debate about the US current account has shifted from the sustainability of foreign debt to the impact of reducing the external deficit on growth and employment.

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

33 UNCTAD is implementing a project on development strategy and debt sustainability, which also integrates aspects of debt management.

How can the Secretary General's proposed definition of debt sustainability be made operational?

Other peripheral countries already have Greek style problems of debt sustainability and eroded competitiveness.

Europe could re engineer the eurozone to enable debt sustainability and high economic growth.

How can the resolution of debt sustainability problems facing middle income countries be facilitated?

Greece is also the canary in the coal mine for the euro zone, where all the PIIGS economies (Portugal, Italy, Ireland, Greece, and Spain) suffer from the twin problems of public debt sustainability and external debt sustainability.

The question of debt sustainability analysis is also key to the resolution of the debt crisis of other low and middle income countries.

In June 2004, the Evian approach was applied to examine the debt of Gabon, and the Debt Sustainability Analysis concluded that Gabon's debt is sustainable in the short term.

For countries that have reached the completion point, the challenge is to achieve lasting debt sustainability and avoid falling into a new debt trap.

Long term sustainability of debt depends mainly on the growth and export prospects of debtor countries.

We are attentively following the international debate on the concept of the sustainability of external debt.

Debt sustainability indicators for Haiti are mixed. It is estimated that the debt export ratio in net present value terms is high (187 per cent), suggesting that Haiti's debt is unsustainable.

It follows that debt sustainability should be part of the overall development strategy of a country, addressing debt, trade and finance in a coherent framework.

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.

In particular, they should have paid greater attention to the sustainability of US mortgage and consumer debt.

Yet, in addition to being horribly painful, domestic deflation threatens the sustainability of public and private debt.

There will be a review of Haiti's debt sustainability and, in particular, its eligibility for HIPC relief.

To move forward, we should redefine debt sustainability as the level of debt that allows a country to achieve the Millennium Development Goals and reach 2015 without an increase in debt ratios.

7. Stresses that debt sustainability depends upon a confluence of many factors at the international and national levels, underscores that no single indicator should be used to make definitive judgements about debt sustainability, and emphasizes that country circumstances should be taken into account

The Fund also actively monitors capital market developments, and is implementing a more systematic assessment of debt sustainability.

With governments around the world (including Germany s) accumulating unprecedented levels of peacetime debt, markets are worrying about sustainability.

The Paris Club Agreement with Iraq of November 2004 represents a significant step towards long term debt sustainability.

ODA receipts and debt sustainability, landlocked and transit developing countries and developing countries as a whole, 2000 2003

Under the Evian approach, the Debt Sustainability Analysis (DSA) undertaken by IMF for each debtor country plays a critical role in shaping the outcome of debt restructuring.

However, much more needed to be done to assist countries that had reached the completion point but continued to experience severe debt sustainability and debt servicing problems.

Recession and price deflation reduce tax receipts and worsen the dynamics of public debt, threatening the return to sustainability.

Low or negative population growth also implies lower potential economic growth and therefore worse debt to GDP dynamics and increasingly grave doubts about the sustainability of public sector debt.

The sustainability of a country's external debt is determined by the projected flows of revenues and expenditures, including those for servicing debt, as well as changes in exchange rates.

Until the Reinhart Rogoff paper, the main argument for fiscal retrenchment rested on concerns about the sustainability of public debt.

Assuaging doubt about the sustainability of public debt in the eurozone would thus probably require a deep restructuring as well.

While some of our countries have benefited from debt relief strategies including the Highly Indebted Poor Countries Initiative that has not as yet resulted in debt sustainability in the region.

In particular, they should have paid greater attention to the sustainability of US mortgage and consumer debt. In 2007, the mortgage and consumer debt to GDP ratio was more than 90 , compared to 24 for net foreign debt.

To move forward, the Secretary General proposed that debt sustainability should be redefined as the level of debt that allowed a country to achieve the Millennium Development Goals and reach 2015 without an increase in its debt ratios.

Several speakers expressed their support for the Secretary General's proposal to define debt sustainability as the level of debt that would allow a country to achieve the Millennium Development Goals by 2015 without an increase in debt ratios.

Of course, the various components of debt differ considerably in their character and sources of financing and thus in their sustainability.

But, as with Argentina, Russia, and Ecuador, Greece may also be insolvent if adjustment fails to restore debt sustainability and growth.

18 See IMF Debt Sustainability in Low Income Countries Further Considerations on an Operational Framework and Policy Implications, 10 September 2004.