STATEMENT OF TOTAL OUTSTANDING COMMITMENTS

TOTAL OUTSTANDING COMMITMENTS

Recovery of indebtedness to the Fund

Debt to Member States

Total outstanding loan commitments

The debt owed to such institutions accounted for some 28 per cent of the region apos s debt stock but consumed some 45 per cent of total debt service payments.

Total outstanding grant commitments c , These amounts exceed available resources owing to the application of the partial funding formula.

A third important class of foreign debt of developing countries is that owed to multilateral institutions.

(a) Settling all indebtedness to the United Nations

Dominican Republic a Including debt owed to the International Monetary Fund.

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

We have cancelled 2.8 billion of debt owed by African countries.

Trinidad terms would cancel two thirds of the entire stock of eligible debt.

The authors conclude that, by reducing the share of short term foreign currency debt in a country s total liabilities, capital controls can reduce vulnerability to financial crises.

Six months later, after substantial official funds had been used to pay private creditors, the outstanding private debt was substantially restructured.

Of this, debts to foreign governments constituted more than 11 billion rubles.

b) cancel all official debt of all LDCs.

The outstanding debt of all LDCs must be written off immediately.

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

This burden includes both public debt (owed by the government) and external dent (owed by the country as a whole to foreigners).

(b) The Secretary General may make deductions from payments due from the United Nations for indebtedness to the United Nations or to third parties, for lodging provided by the United Nations, by a Government or by a related institution, or for contributions for which provision is made under these rules.

Debt to troop and equipment contributors is also expected to rise again.

The other option lets creditors restructure the debt at concessional interest rates so that the net present value of the debt servicing payments due on the debt will be reduced by half.

In the case of Greece, the interest payments apply to government debt held by Greek individuals and institutions, as well as to government debt held by the IMF, the European Central Bank, and other foreign lenders.

For the middle income countries, in other words, the Brady Plan mechanism seems to have provided a practical framework for reduction of the debt and debt service owed to commercial banks.

Within a year, Germany had asked for, and obtained, a moratorium. New bond issues, following a big debt write down in 1924 (the Dawes Plan), enabled Germany to borrow the money to resume payments.

3. The German Government has waived considerable amounts of the debt incurred under development assistance.

Under the international debt strategy for addressing commercial bank debt, progress has been very substantial.

Big banks, not small banks, are the major players in the market for short term debt, which makes their bonds riskier than small banks bonds.

A similar drachmatization of euro debts would be necessary and unavoidable.

Table 3 Recent sovereign debt restructurings with private creditors main features

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

In addition, there is the 3.9 trillion in debt owed by America s government backed housing finance agencies (Fannie Mae, Freddie Mac, and others), which currently underwrite more than 90 of all US mortgages.

The Paris Club, the major forum for restructuring debt owed to official bilateral creditors, takes a different approach than is used by the bank advisory committees (also called the quot London Club quot ) which renegotiate the debt owed to commercial banks.

(a) The responsibility of any other company in the group for the external debts of the insolvent company (being all debts owed by the insolvent company except for those owed to related group companies, i.e. intra group debts )

Indeed, these debt service costs alone account for 22 of the Egyptian government s total expenditures.

Fiscal positions are solid and public debt amounts to only 32 of the region s GDP.

Debt restructuring writing down the debts of homeowners and, in some cases, governments will be key.

As a result, households want to spend less and pay down their debts.

The cost of fully covering IMF debt stock relief, without undermining the Fund's financing capacity, should be met by the use of existing IMF resources.

(f) continue deliberations on the creation of a framework to deal effectively with all sovereign debt of developing countries.

Creditor Governments offer assistance through Paris Club restructuring of debt owed to them and by extending export credits.

Other countries are eligible, and the IMF is helping these states make rapid progress to qualify, with total debt relief expected to be more than 5 billion.

And the projected fiscal deficits imply that the additional debt that will be issued during the next decade will be as large as the total stock of debt today.

To achieve this, there should be a full cancellation of all bilateral official debt and substantial reduction of debt stock and debt service burden owed to multilateral financial institutions and commercial creditors.