Contingent convertible bonds, or cocos, have been proposed as a solution to this problem.

The site also solicited advice on which car to convert.

Calculation of total health care revenue expenditure (in millions of KM)

The regular resources cash balance at the end of 2004 was 329 million, consisting of 318 million in convertible currencies and 11 million in non convertible currencies.

Bank reserves were in silver coins, and banknotes were convertible solely into silver.

In addition, 1.5 million was provided for

Table 5 shows details of the United States dollar equivalent of non convertible currencies held at 31 December 2004.

Adding cocos to government bonds will require solving a host of technical problems.

In fact, the success of banks in issuing cocos suggests that investors do have the appetite for them.

There would be worries that adding cocos to sovereign bonds might raise governments borrowing costs.

depreciation of nonconvertible currencies. In 2004, the amount written off plus the adjustment for overvaluation of cash held in nonconvertible currencies totalled 2.7 million.

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

When a bank s capital falls below a pre specified limit, its cocos automatically convert from debt to equity at a fraction of their previous price.

Sovereign cocos have the advantage that their activation would not constitute a credit event triggering the credit default swaps written on the bonds. The existence of large quantities of CDS, together with uncertainty about who has written them, has fed the reluctance to proceed with restructuring.

Investors naturally respond to unsustainable debt by selling bonds until interest rates become ridiculous.

Finally, solvency rules should be complemented by an obligation that banks issue a substantial amount of non collateralized debt on the order of 100 of their capital that is convertible into equity.

The Committee has complied with the obligation to submit annual declarations, and recently recommended to the executive branch a draft decree aimed at regulating the activities of enterprises working with chemical substances and precursors liable to be diverted into the manufacture of chemical weapons.

The site also solicited advice on which car to convert. The Toyota Corolla was the first choice hardly surprising since it is the leading car model in Finland (with 7 of the market).

This would not create a budget deficit for rich countries. Recipient countries would have to pay the IMF a very low interest rate the composite average treasury bill rate of all convertible currencies.

At the same period the average value of the consumers' basket was, in the Federation, KM 458, in Republika Srpska, KM 462 and in Brčko District, KM 419.

This ticket is not transferable.

Pensioners in the Federation received KM 188 on average, and pensioners in Republika Srpska received some KM 120 on average.

Current assets Current assets are cash and other assets expected to be converted to cash or consumed either in a year or in the operating cycle (whichever is longer), without disturbing the normal operations of a business.

The average salary in the Federation of Bosnia and Herzegovina in December 2002 was KM 513, and in Republika Srpska it was KM 365 (compared with consumer basket of KM 459 in the Federation of Bosnia and Herzegovina and KM 458 in Republika Srpska).

Coco for Europe

The renminbi is still non convertible.

According to statistical data, average salaries in the last year (2002) in the Federation of Bosnia and Herzegovina were KM 513, in Republika Srpska, KM 356, and in Brčko District, KM 628.

But the literature on related instruments known as collective action clauses suggests that borrowing costs would rise only for governments approaching the limit of their creditworthiness that is, close to the cocos trigger.

On the basis of obligatory health insurance, revenues for 2001 at the Bosnia and Herzegovina level were KM 589.7 million or KM 157.04 per capita, or KM 198 per insured.

Objections to the idea start with the question of whether there would be adequate demand for these novel sovereign debt instruments. In fact, the success of banks in issuing cocos suggests that investors do have the appetite for them.

In Chile, artisanal fisheries received only 2 percent of the quota in the horse mackerel fishery, too little to maintain current fishing effort when individual non transferable quotas were created in 2001.

In international law, debt that is incurred without the consent of the people, and that is not used to their benefit, is referred to as odious as such, it is not considered transferable to successor regimes.

Negotiable documents

Those rights are transferable, in whole or in part, and limited in time.

The same question arises with respect to receivables, negotiable instruments, negotiable documents and bank accounts.

Second, China will have to make its currency convertible.

Negotiable documents of title

Transfers are provided by way of four major programs Equalization, Territorial Formula Financing (TFF), the Canada Health Transfer and the Canada Social Transfer.

The CFA franc issued by two sub regional central banks (BCEAO and BEAC) are not interchangeable.

(The yuan should be included as soon as China makes its currency convertible.)

Some possible issues for discussion and elaboration

Non derogable obligations

(c) Verifiable achievement indicators

The current safety net approach may work in the short term but will ultimately lead to ballooning and unsustainable government debts, particularly in the US and Europe.

1. Recalls the aim of enhancing the mobility of staff and the portability of pensions