Debt for equity and debt for nature swaps should be more broadly implemented.

(a) Debt diversification swaps both through local currency intermediation and debt equity swaps.

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

But, while debt forgiveness benefits holders of both equity and debt, debt holders don t voluntarily agree to it for two reasons.

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

Many countries tax systems hugely favor debt over equity.

Debt equity swaps are also useful in this regard.

This has led to heightened volatility in equity, money, and debt markets.

The typical bank is capitalized with equity, long term debt, short term debt, and deposits.

Debt equity swaps rescue the banks without rescuing their shareholders.

Debt equity swaps would be a much better way to recapitalize the banks.

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

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.

Banks have less debt relative to their equity levels than they had in 2007.

After all, more debt (relative to equity) means a higher payoff when things go well.

Innovative measures, including debt for equity swaps, debt swaps for the protection of the environment and debt for development swaps, should be considered.

They also advocated the adoption of such innovative measures as debt for equity swaps, debt for social development and debt for the environment.

Under Chapter 11, companies with a solid underlying business generally swap debt for equity. Old equity holders are wiped out and old debt claims are transformed into equity claims in the new entity which continues operating with a new capital structure.

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.

Finally, increasing financial leverage means that the firm uses more debt financing relative to equity financing.

In paragraph 10, reference should me made to Debt for Equity in Millennium Development Goal Projects .

Where realistic debt restructuring scenarios indicate capital shortfalls, across the board conversion of bank debt into equity will be necessary.

Indeed, if, as some believe, only a fraction of the banks equity is at risk, the potential debt equity swaps would be minuscule.

In addition, innovative measures such as debt for equity swaps, debt for social development swaps, debt for environment swaps, etc. should be considered and applied effectively.

Following that, the restructured bank can be recapitalized by raising new debt and equity.

It lists already 1,000 entities that are offering debt and equity for social enterprise.

quot 12. Urges the international community to consider wider application of innovative measures, such as debt for equity swaps, debt for nature swaps and debt for development swaps, without prejudice to more durable solutions such as debt cancellation

13. Urges the international community to consider wider application of innovative measures, such as debt for equity, debt for nature and debt for development swaps, without prejudice to more durable solutions such as debt reduction and or cancellation

A number of proposed innovative mechanisms relating to debt relief deserved serious consideration, such as the debt swap mechanism and debt for equity arrangements in connection with the Millennium Development Goals.

Greater use should be made of the prospects offered by non traditional debt repayment schemes such as debt equity or debt for nature swaps in debtor countries.

Do we need financial institutions to be so highly leveraged (that is, carrying so much debt relative to equity)?

As during the Great Depression and in many debt restructurings, it makes sense in the current contingency to mandate partial debt forgiveness or a debt for equity swap in the financial sector.

Based on those values, contracts with existing equity and debt holders should then be restructured.

At the same time, China s corporate sector relies excessively on debt financing, rather than equity.

Banks often oppose higher equity asset ratios, because equity capital is more expensive than debt capital. But this is precisely because of the lemon effect.

Forcing a debt for equity swap or debt forgiveness would be no greater a violation of private property rights than a massive bailout.

UNCTAD should continue its work in the area of debt, including the study of the application of debt for equity swaps for development.

12. Urges the international community to consider wider application of innovative measures, such as debt for equity and debt for nature swaps, without prejudice to more durable solutions such as debt reduction and or cancellation

Concessions that the developed countries could make to Africa included meeting their official development assistance (ODA) commitments, debt cancellation and the conversion of debt into equity investments.

Converting some portion of debt to equity under predetermined solvency threatening conditions would provide an extra layer of protection.

Use more cheap debt, and equity becomes riskier and costlier, keeping overall financing costs the same.

It should promote, inter alia, innovative schemes such as debt for equity swaps, debt for environment swaps and the establishment of environment trust funds.

quot 14. Urges the international community to consider wider application of innovative measures, such as debt for equity, debt for nature and debt for social development swaps, and, in addition, to consider also debt for investment swaps, without prejudice to more durable solutions such as debt reduction and or cancellation

Government debt must be restructured. Bank debts have to be converted into equity and, where banks are insolvent, written off.

It was the equivalent of a Chapter 11 restructuring of American corporate debt, in which debt is swapped for equity, with bondholders becoming new shareholders.