Debt sustainability and debt relief

Debt sustainability is also affected by vulnerability to external shocks.

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

Sovereign Debt at Square One

The Root of All Sovereign Debt Crises

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

The sovereign debt and banking crises have become even more closely interlinked as banks bought greater amounts of their home countries sovereign debt.

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.

Sovereign debt no longer looks stable.

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.

Things are trickier when public finances are under acute stress and markets are worried about sovereign solvency, as is the case in southern Europe.

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.

The sovereign debt crisis is well known.

In Europe, risks spreads are rising on Italian and Spanish sovereign debt.

And it probably would require that the EU be able to issue sovereign debt.

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.

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.

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

They would have to tackle the banking and the sovereign debt problems simultaneously, without neglecting to reduce divergences in competitiveness.

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

The risk premia on the sovereign debt of Greece, Ireland, and others have not diminished.

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.

Interest rate spreads on Italian sovereign debt have widened, but not sharply.

A New Approach to Eurozone Sovereign Debt

Sovereign debt restructurings with private creditors

Greek sovereign debt has been downgraded to below that of Egypt.

Affordability does not appear to be a big hurdle.

Eventually, the sovereign debt crisis might hit the real economy, with Europe ending up in a vicious circle of even higher deficits, lower growth rates, exploding unemployment, and decreasing competitiveness.

Much is being made of high levels of sovereign debt on both sides of the Atlantic, and in Japan.

The first relies on intervention by the central bank in the event of a threat to the sovereign debt market.

The link between sovereign debt and bank debt has to be broken once and for all.

This is harder to judge than is the solvency of a firm, because a sovereign state possesses the power to tax. In theory, all that is needed in order to get out of debt is to increase taxes and cut spending.

Until this summer, the sovereign debt crisis was confined to three small countries Greece, Ireland and Portugal.

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.

The economists Carmen Reinhart and Kenneth Rogoff have studied centuries of sovereign debt crises, and remind us that today s developed world has a forgotten history of sovereign default.

It is no secret that sovereign bonds carry significantly higher borrowing costs than concessional debt does.

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