Betting With the House s Money

24 Collective Action Clauses included in bond or loan contracts would prevent a minority of creditors from blocking negotiations with the debtor.

The recent decision of the Bretton Woods institutions to support the initiative to cancel the debt of heavily indebted poor countries was laudable.

Paris Club creditors cancelled US 823 million of debt, and US 737 million was rescheduled.

Generally speaking, they have contracted debts in their own countries in order to pay visa and recruitment fees.

58. The programme of regional seminars, such as the seminar on external debt recently held in Moscow, should continue.

The restructuring of debt owed to private creditors was also an important aspect of external debt crisis resolution. The introduction of collective action clauses and the development of a voluntary code of conduct by private creditors and sovereign debtors were the major ongoing initiatives in that area.

With due deference to the 2003 Evian approach , there has, however, been no real initiative to address the debt of low income and middle income developing countries that are not part of the Heavily Indebted Poor Countries (HIPC) Debt Initiative process.

The recent decision of the Group of 8 (G 8) to cancel the external debt of 18 highly indebted poor countries, including 13 least developed countries, is a welcome move.

13. The praiseworthy initiative of the Bretton Woods institutions to create a multilateral trust fund for alleviating the external debt of the least developed countries had nevertheless fallen short of meeting the expectations of those countries, which had hoped for the cancellation of their debt.

2. Emphasizes the special importance of a timely, effective, comprehensive and durable solution to the debt problems of developing countries, since debt financing and relief can be an important source of capital for economic growth and development

Emphasizes the special importance of a timely, effective, comprehensive and durable solution to the debt problems of developing countries, since debt financing and relief can be an important source of capital for economic growth and development

But hints of new fiscal imprudence or of backsliding on long term debt consolidation and reduction can drive up borrowing costs dramatically. In these circumstances, the additional costs of debt service easily outweigh any gains that might come from some measure of fiscal relaxation.

External borrowing was the only way to finance the quot take off quot phase of development.

His Government was prepared to negotiate with its debtors on a bilateral level and within the framework of the Paris Club.

Senegal also reached the completion point in April 2004, and in June 2004 during a meeting of the Paris Club, creditors agreed to cancel US 94 million of Senegal's debt in net present value terms.

Prior to the crisis, banks had often been net sellers of foreign government bonds, but they significantly increased their purchases during 2008 2009. With the onset of the European sovereign debt crisis in 2010, banks appetite for public debt fell again.

While that initiative was highly important, we hope that it will be broadened ever further to cover the wider area of the foreign debt burden that weighs heavily on all the indebted countries of Africa, including the medium income States.

11 The Asian Bond Market Initiative was endorsed at the ASEAN 3 Deputies Meeting held in Chiang Mai in December 2002. Its objective is to develop efficient bond markets in Asia.

Without sound economic fundamentals and efforts to seek additional earnings, developing countries could easily relapse into the vicious circle of poverty, debt, and borrowing once aid dries up.

The banks borrowed heavily abroad due to attractive foreign interest rates, and onlent the funds to corporate clients.

Madagascar reached the completion point in October 2004 and attended a Paris Club meeting in November. Creditors cancelled US 752 million of Madagascar's debt and rescheduled another US 305 million.

45. UNCTAD organized a seminar on Sub Saharan Africa s Debt to Non OECD Official Creditors on 29 31 October 1996.

Similarly, in guaranteeing the debt of Irish banks in September 2008, the Irish government did something that no responsible government should have contemplated. It took responsibility for obligations that amounted to a multiple of Ireland s national income, driving up government debt to more than 1,300 of GDP.

The broader message of the Greek move is that coordination has so far been a code word for almost total control by creditors (sometimes together with the ECB). The attempt to impose a benevolent creditors dictatorship is now being met by a debtors revolt.

Many African countries under democratically elected Governments are grappling with the repayment of these debts, which the President of Nigeria once described as dubious and immoral .

This project could serve as an input into possible renewed multi stakeholder consultations on debt and development.

Debt service coverage and bond interest

In the insolvency of a non grantor debtor, the creditor is an unsecured creditor with an unsecured claim against the non grantor debtor.

Mr. Axel van Trotsenburg, Head of the HIPC Debt Initiative Implementation Unit of the World Bank, and Mr. Alan T. McArthur, Deputy Division Chief in the Official Financial Operations Division of the Policy Development and Review Department of the International Monetary Fund, will give a joint special briefing on the theme Heavily Indebted Poor Countries Debt Initiative (HIPC) .

On the debt burden, we applaud debt relief for the highly indebted poor countries.

Mr. Axel van Trotsenburg, Head of the HIPC Debt Initiative Implementation Unit of the World Bank, and Mr. Alan T. McArthur, Deputy Division Chief in the Official Financial Operations Division of the Policy Development and Review Department of the International Monetary Fund, will give a joint special briefing on the theme Heavily Indebted Poor Countries Debt Initiative (HIPC) on Friday, 17 October 1997, from 2 p.m. to 3 p.m. in Conference Room 5.

24. Welcomes initiatives that have been undertaken to reduce outstanding indebtedness, and invites further national and international measures in that direction, including, as appropriate, debt cancellation and other arrangements

I would like to appeal to all creditors to follow this noble example, because debt cancellation has the potential to assist the poor countries in achieving the MDGs and, hence, attaining national economic recovery and economic transformation.

The project will include the creation of a Regional DMFAS Unit in Yaoundé, the launching of a training programme for debt managers, the organization of further joint UNCTAD Pôle Dette workshops and seminars and the strengthening of Pôle Dette's capacities to deal with issues related to debt recording and management systems.

I would like to seize this opportunity to call for your support at the forthcoming annual meeting of the Bretton Woods institutions, for the G 8 proposal and for an extensive cancellation of debts including multilateral debts for the countries concerned.

12. A regional seminar on privatization was held on 25 27 November 1996 in Lusaka in collaboration with ESAIDARM (Eastern and Southern African Initiatives in Debt and Reserves Management).

Options for lower debt burdens on Governments of heavily indebted developing countries include debt cancellation and debt swaps for sustainable development.

External debt and debt servicing costs had also risen.

Debt buy back and Brady bonds11

A. The HIPC initiative

Heavily Indebted Poor Countries (HIPC) Debt Initiative

(q) quot Unliquidated obligation quot shall mean an obligation or that portion of an obligation which is not yet disbursed.

83 86) in order to maximize the value of the estate. For example, to the extent that the insolvency representative is of the view that the value of the estate can be maximized if the business continues to operate for a temporary period in liquidation, it may wish to sell inventory that is partially encumbered.

Over several decades, a succession of civilian military dictatorships in third world countries incurred massive debts, which are currently crippling these countries.