Level annual debt service

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

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.

C. Difficulties in servicing multilateral debt

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

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

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 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

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

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

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.

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.

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

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.

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

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

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

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

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

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

Debt service reduction, normally in the form of interest reduction bonds, has been offered in three ways.

Most of the debt servicing obligations to official bilateral creditors have been restructured in the Paris Club.

One possible means of achieving that end would be to recycle the debt by creating a special fund to finance development projects using debt service payments.

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.

But will tax revenues rise fast enough to offset the escalating cost of servicing the government s mountain of debt?

The third assumption is that the United Nations underestimated the flight of capital and the erosion of growth due to external debt servicing.

There have been proposals to limit debt servicing in order to prioritize social spending.

The international community had devised only very limited means of adjusting debt servicing payments to those institutions.

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

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.

DMFAS pays for itself by making debt servicing procedures more efficient and by checking inconsistencies in the claims of creditor agencies.

But not enough has been done to alleviate the burden of multilateral debt or to assist countries that, despite a large debt servicing burden, are not in default.

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.

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.

A variety of factors have contributed to the debt servicing difficulties of highly indebted countries.

The ratio of debt service to exports, however, has declined for sub Saharan Africa.

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

(f) A number of countries in transition were experiencing serious debt servicing difficulties.

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

The fiscal disequilibria in Honduras and Nicaragua are very high, reflecting the external debt servicing burden.

quot Also expressing concern about the growing debt stock and debt service burden of the least developed countries, the shrinking market for their products and the declining flow of development resources,