Recycling debt to finance economic, social and environmental projects should be considered.

Restructuring Debt Restructuring

B. Debt restructuring

To lend more to Spain s government so that it can recapitalize the country s banks adds to its debt burden and scares markets, which fear future debt restructuring.

Sovereign debt restructuring

The mechanics of debt restructuring are straightforward.

The ability to refinance government debt and keep costs down is essential to strengthening public finances and boosting GDP growth.

Other debt renegotiations

Proposals on debt restructuring frameworks

B. Debt restructuring 11 28 7

Reintegration activities would continue to be financed from voluntary contributions.

And then you offer to refinance that debt and pay even more interest.

But internal devaluation requires debt restructuring.

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

Nonetheless, the ECB has provided large amounts of liquidity to the financial system, indirectly softening the pressure on government debt refinancing.

Europe wide bank recapitalization is essential in the short term to contain the cost arising from possible sovereign defaults.

Funds could be used for recapitalizing the banks and retiring some debt.

212. One reason was the link between receivables financing and factoring.

Repos are financing transactions.

They advocated a review of the conditionality for debt finance and the establishment of a technically sound financial arrangement to bridge the gap between macroeconomic policy targets and millennium development goals targets and commitments.

Light bars represent debt cancellation or rescheduling.

The debt burden is crushing hopes for the relaunching of its development.

The economy grew, but mainly because American families were persuaded to take on more debt, refinancing their mortgages and spending some of the proceeds.

His country might even be able to finance its arrears if such war debts were paid.

This episode offers a few preliminary lessons on debt buybacks.

Sovereign debt restructurings with private creditors

Taxation remains the dominant source of government revenue in most developed countries. But the role of debt finance has been growing and, with it, the need to refinance old debt when total expenditure, including debt service, exceeds total revenue.

They would assist in financing the up front costs of the Brady deal and for servicing the heavy debt burden that will remain even after restructuring is completed according to the terms of the debt agreement.

We must also bear in mind the role that debt plays as a financing tool for development debt financing is appropriate only where there is a reasonable expectation that loans will be repaid.

Item 3. Debt issues in a development context, including the recent evolution of debt rescheduling

But when local governments are barred from debt finance, they look for other means.

The debt ceiling absolutists grossly underestimate the massive adjustment costs of a self imposed sudden stop in debt finance.

public provision of credit to the solvent parts of the corporate sector in order to avoid a short term debt refinancing crisis for solvent but illiquid corporations and small businesses

These debt restructurings and individual country buy backs of debt (in part using grants for that purpose from donor Governments) have generally led to modest net reductions in debt.

Recapitalization of banks that appeared very vulnerable

The rebuilding of the regional schools was financed by the Armenian government.

Launch of position paper Financing Development through Redistribution.

Debt restructurings often entail conflicts among different claimants.

If this principle prevails, no one would ever accept debt restructuring.

There have been many proposals on debt restructuring mechanisms.

The agenda for development also should devise a plan to alleviate debt overhang and place a ceiling on debt repayment, by scheduling debt on reasonable terms, writing off some debt and enhancing official development assistance.

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.

UNCTAD has continued to provide support to African and other debtor countries in preparing their negotiations on the rescheduling or restructuring of bilateral official debt in the framework of the Paris Club.

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

In an ideal world, Europe would deal with its excessive debt burdens through a restructuring of Greek, Irish, and Portuguese liabilities, as well as municipal and bank debt in Spain.