Most of the debt servicing obligations to official bilateral creditors have been restructured in the Paris Club.

I have 4 billion in residential CDOs, collateralized debt obligations.

The terms of debt reduction had been too slow to take effect since they applied only to servicing obligations during the consolidation period.

And in particular, these CDOs.

There are other liabilities other than debt.

Since the late 1980s, the international debt strategy has encompassed a variety of options that were made available to different categories of countries for restructuring the debt servicing obligations on several forms of debt.

Level annual debt service

The resolution, moreover, calls for the treatment of multilateral debt to alleviate debt and debt service burdens.

So maybe I have a a billion of these CDOs.

The Heads of Government also welcomed the reduction in the region apos s external debt as countries sought to limit new external borrowing and to service systematically existing debt obligations.

But it is also attributable to the non payment of unsustainably high debt servicing obligations and is manifested in the accumulation of arrears. C

As for the ratio of debt service to exports, the peak was achieved in 1982, when the burden of the debt service caused the outbreak of the debt crisis.

For many countries, the greater probability is that the existing debt servicing obligations will not be met, despite several rounds of debt rescheduling in the Paris Club, the London Club or ad hoc arrangements.

Debt service payment (billions of dollars)

Debt servicing accounted for the bulk of Africa apos s debt burden.

Let's say that these CDOs, and at least they used to be,

C. Difficulties in servicing multilateral debt

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

As at the end of January 1993, 4.6 billion in debt service obligations owed to the Fund by 10 countries were overdue six months or more.

Debt servicing represents 23.7 per cent of goods and services exports.

The benefits of debt relief do not increase linearly with the amount of debt servicing reduced they materialize when debt reduction exceeds a critical mass.

And all of these CDOs looked like these great high yielding instruments.

Thus, when restorative measures are required, financial markets have no difficulty in perceiving that debt servicing obligations have been restructured, regardless of the mechanism by which they are undertaken.

The burden of servicing debt and the payment of arrears have a suffocating effect on the economies of developing countries.

C. Difficulties in servicing multilateral debt 43 49 15

Sri Lanka apos s debt repayment obligations had continued to increase.

The overall ratio of debt servicing to export earnings was almost 30 per cent.

In several cases, the early strategy even aggravated the problem by arranging new lending to help finance existing debt servicing, which mainly postponed a more severe debt servicing crisis.

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.

However, the Trinidad conclusions should also be applied to multilateral debt, which now accounts for one third of debt servicing costs.

None the less, although it had diminished, the debt to export ratio remained high, and the debt servicing ratio remained higher than that of other regions.

Government debt service has in general become easier, owing to low interest rates.

Indeed, any rescheduling of debt servicing obligations is expressly forbidden.

The ratios of external debt to exports and debt service to exports are substantially lower than they were in 1982.

The strategy has encouraged debt and debt service reduction by the banking community for heavily indebted countries undertaking macroeconomic and structural reforms.

Commercial banks, for their part, agree to provide debt and debt service reduction (DDSR), although sometimes individual banks extend new loans instead of reducing the debtor apos s obligations.

A process of economic adjustment was thus required by each debt crisis country but since the country apos s debt servicing obligations exceeded what it could manage, a process of debt restructuring was also required. The domestic adjustment package

The conclusion is clear Greece s debt service burden is too large, and it must be reduced.

Annual spending on fixed expenses, such as debt service and pensions, is not subject to public participation.

According to this definition net transfer is disbursements minus total debt service payments.

Debt service reduction, normally in the form of interest reduction bonds, has been offered in three ways.

One possible means of achieving that end would be to recycle the debt by creating a special fund to finance development projects using debt service payments.

This means no cross border sovereign debt (or esoteric instruments, such as collateralized debt obligations).

It seeks to provide comprehensive treatment of debt crisis countries by debt reduction in three stages rather than a simple rephasing of the debt servicing schedule.

But will tax revenues rise fast enough to offset the escalating cost of servicing the government s mountain of debt?