II. THE STATUS OF THE INTERNATIONAL DEBT STRATEGY . 7 17 5

II. THE STATUS OF THE INTERNATIONAL DEBT STRATEGY

The international debt strategy as of mid 1993

Why Europe Needs Automatic Haircuts

Work is under way to develop a comprehensive debt strategy.

I. CURRENT DEBT SITUATION OF DEVELOPING COUNTRIES

Efforts further to improve international debt strategy are to be made.

The alternative is to cut the face value of Greece s debt.

Several participants expressed the need for unconditional cancellation of debt.

international debt strategy 29 000

Talks with creditors have begun to establish a workable debt strategy.

The post World War II Marshall Plan provided debt relief as well.

The quickest means of doing so is substantial and generous debt cancellation and relief.

I. CURRENT DEBT SITUATION OF DEVELOPING COUNTRIES 1 28 3

Economic development involves financial flows and the buildup of debt.

The middle income countries should receive substantial debt relief.

(c) The recent improvements in the international debt strategy were welcomed.

Coercive restructuring of insolvent banks unsecured debt would be next.

Rogoff s discussion about the debts accumulated after WWII is beside the point.

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

Towards a human rights based approach to sustainable debt management

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

A debauched corrupter of innocents, undoubtedly infected with some unmentionable disease, producer of debts and bastards galore.

Stressing also the importance of a sound enabling environment for effective debt management,

This is hardly the first time I have stressed the need for wholesale debt write downs.

But it is wrong to think that massive accumulation of debt is a free lunch.

There was a broad consensus that immediate and wide ranging debt relief was necessary.

This is in part because FDI is perceived to be a non debt creating financial flow.

Representative government, and its logical outgrowth, the democratic principle, became part of the classic model of good debt management.

Recent history, particularly the excessive accumulation of private and public debt, suggests that we have not acquired it.

Southern Europe was experiencing a sell off of sovereign debt and a massive withdrawal of private capital.

The commission would also propose the amount of necessary financial support and an economic adjustment path that could guarantee long term debt sustainability.

(a) Report of the Secretary General on the international debt strategy as of mid 1993 (A 48 345)

Recent estimates put the total stock of debt at 1,400 billion as of the end of 1992.

23 See Report of the Secretary General on the international debt strategy as of mid 1993 (A 48 345).

My delegation also supports the proposal relating to the outright cancellation of the external debt of the least developed and poorest countries.

Exposure to Mexican debt alone represented some 90 of the capitalization of major US banks.

Consider Germany, the biggest debt transgressor of the twentieth century, according to the economic historian Albrecht Ritschl.

Bretton Woods II should resolve this problem by creating an international debt court.

In addition to sustainable debt management, urgent action needs to be taken in order to do away with agricultural subsidies, in particular cotton subsidies.

Unfortunately, overcoming the deeply ingrained debt bias in rich world financial systems will not be easy.

Immediate and wide ranging debt relief was necessary to ensure the ability of developing countries to meet the Millennium Development Goals.

Other threats include drought, famine, locust infestations, extreme poverty and the debt burden stifling the economies of our countries.

The approach helps reduce the present value of the multilateral debt and has been important for the countries receiving the assistance.

51. The success of the international debt strategy lay mainly in defusing the crisis involving commercial bank debt.