Recovery of indebtedness to the Fund

Debt to Member States

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.

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.

Within the next few weeks, the United States will be current on our peace keeping bills.

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 )

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

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.

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.

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.

These schemes imply socialization of debt taxpayers elsewhere in Europe would share a country s debt burden.

The Group of Eight (G 8) agreed at Gleneagles to go further. In order to break the lend and forgive cycle permanently, we agreed to cancel 100 per cent of the debt of the world's most heavily indebted nations.

Further haircuts on private claims would also be needed, starting with a moratorium on interest payments.

When it became clear that people could not pay back what was owed, the rules of the game changed.

Some analysts argue that, given guarantees of debt incurred by public corporations, the Greek government s obligations are even higher.

He noted the need to address the issue of international debt of the poor countries and to engage the private sector in providing care.

So a key challenge in resolving the eurozone crisis is to reduce the southern countries debt burdens.

In November 2002, China wrote off all the mature debts totalling 9.607 million owed to it by Afghanistan.

There was also a need to address the issue of international debt of poor countries and to engage the private sector in providing care.