Debt sustainability is also affected by vulnerability to external shocks.

Debt sustainability and debt relief

7. Stresses that debt sustainability depends upon a confluence of many factors at the international and national levels, underscores that no single indicator should be used to make definitive judgements about debt sustainability, and emphasizes that country circumstances should be taken into account

Emphasizes that creditors and debtors must share responsibility for preventing unsustainable debt situations

4. Emphasizes that creditors and debtors must share responsibility for preventing unsustainable debt situations

3. Also emphasizes that creditors and debtors must share responsibility for preventing unsustainable debt situations

Emphasizing the important role that private sector creditors play in debt relief and debt sustainability,

Invite the Bretton Woods institutions to consider the issue of debt sustainability and the implications of an HIPC initiative for Haiti.

However, much more needed to be done to assist countries that had reached the completion point but continued to experience severe debt sustainability and debt servicing problems.

Invites the Bretton Woods institutions to consider the issue of debt sustainability and the implications of the Highly Indebted Poor Countries (HIPC) initiative for Haiti

Such initiatives should include efforts by IMF and the World Bank to develop a debt sustainability framework for low income countries.

To move forward, the Secretary General proposed that debt sustainability should be redefined as the level of debt that allowed a country to achieve the Millennium Development Goals and reach 2015 without an increase in its debt ratios.

In this regard, the task force deems it necessary to define debt sustainability within a State context with a view to attaining a level of debt that allows countries to achieve the Goals and avoid an increase in debt ratios by 2015.

While some of our countries have benefited from debt relief strategies including the Highly Indebted Poor Countries Initiative that has not as yet resulted in debt sustainability in the region.

Beyond the Millennium Development Goals, the long term sustainability of debt depends on the growth and export prospects of debtor countries and, hence, on their success in overcoming structural development problems.

Haiti External debt

External debt

External debt

In June 2004, the Evian approach was applied to examine the debt of Gabon, and the Debt Sustainability Analysis concluded that Gabon's debt is sustainable in the short term.

Thus, the Paris Club's Evian approach relies on IMF Debt Sustainability Analysis for determining the terms of debt reschedulings.

and development

For many heavily indebted non HIPC and middle income countries, debt sustainability will require significantly more debt reduction or restructuring than has yet been proposed.

To move forward, we should redefine debt sustainability as the level of debt that allows a country to achieve the Millennium Development Goals and reach 2015 without an increase in debt ratios.

Affordability does not appear to be a big hurdle.

Need for broader external debt relief

(c) External debt crisis and development (continued)

(c) External debt crisis and development.

(c) External debt crisis and development.

59 223. External debt crisis and development

58 203. External debt crisis and development

60 187. External debt crisis and development

61 188. External debt crisis and development

The experience of Iceland and many emerging markets over the past 20 years shows that nominal depreciation and orderly restructuring and reduction of foreign debts can restore debt sustainability, competitiveness, and growth.

Growth collapsed in Africa in the late 1970 s because of the weakness of the former, and fizzled in Latin America after the first half of the 1990 s because of the weakness of the latter.

Acknowledged that developing country efforts to achieve and maintain debt sustainability should be supported by international assistance in the area of debt management and, where appropriate, by consideration of the provision of concessional finance and modification, including reduction of aid conditionalities

Vulnerability refers to the inability to withstand the effects of a hostile environment.

We are attentively following the international debate on the concept of the sustainability of external debt.

Doing enough would require reducing annual budget deficits by 0.5 of GDP every year during the coming decade just to improve the sustainability of government debt on average.

Draft resolution on external debt crisis and development

Table 1 Africa's external debt, 1970 2002

But the eurozone debt crisis has distinctive features.

Reintroducing the drachma risks exchange rate depreciation in excess of what is necessary to restore competitiveness, which would be inflationary and impose greater losses on drachmatized external debts.

And the evidence confirms that the euro crisis is not really about sovereign debt, but about foreign debt.

(c) External debt crisis and development (A 60 139)

8. Notes that it is important for the International Monetary Fund and the World Bank to continue their efforts to strengthen the transparency and integrity of debt sustainability analysis, and also notes the importance of cooperation with debtor countries in order to obtain relevant information