The debt servicing capacity of the DDLICs differs widely as well.

Measuring debt sustainability

Moreover, when countries had no capacity to service their external debt, debt cancellation did not generate more resources for development, although it did improve debt indicators.

Debt sustainability and debt relief

Level annual debt service

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

Indeed, some low income countries with low debt servicing capacity will need to draw mainly on concessional official flows for the foreseeable future.

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

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.

Debt service payment (billions of dollars)

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

In spite of the increase in total debt, debt burden indicators, which largely reflect debt servicing capacity, have improved at the aggregate level (see figure 1).

Debt sustainability is also affected by vulnerability to external shocks.

It has an installed capacity to tend to 17,870 children and adolescents victims of sexual violence.

C. Difficulties in servicing multilateral debt

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

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

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

But the prospects for restoring debt servicing capacity remain uncertain and completion of the agreement is contingent on meeting the policy targets set in a two year stand by loan from IMF.

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 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.

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

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

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

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.

The countries differ widely in terms of population size, level of indebtedness and debt servicing capacity.

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

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.

To address the debt burden problem, many African countries at first resorted to repeated debt rescheduling which focused on debt service flows, resulting in steadily increasing debt stocks and related service payments.

In addition, there were several countries with heavy debt servicing burdens which had consistency honoured their obligations, but with difficulty.

The level of debt service continues to constrain import capacity and hamper growth.

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

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.

A long term alternative requires some capacity to write down debt where it has reached excessive levels.

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

To achieve this, there should be a full cancellation of all bilateral and official debt, as well as a substantial reduction of the debt stock and the debt service burden owed to multilateral financial institutions and commercial creditors.

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.

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

In Uganda, for example, it is estimated that we shall spend about 60 per cent of our projected export receipts on debt servicing.

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

Excessive centralization and harmonization are decimating the subsidiarity and competition needed to drive Europe s economies, as the socialization of debt undermines weaker economies accountability.

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

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