F. Debt burden adjustment . 40 41 20

F. Debt burden adjustment

Some members considered that the threshold should also be based on debt adjusted income figures.

Debt and low per capita income adjustment

D. Debt burden adjustment

This threshold was compared with the debt adjusted per capita GNI of each Member State.

In the context of the adjustment programme, estimates of both the financing gap and the need for the adjustment of the terms on existing debt are made with the assistance of IMF.4

Miscellaneous savings in liquidating obligations and adjustments

Firms will make rupiah payments to INDRA equivalent to the dollar amount of their short term debt valued at a predetermined exchange rate, and INDRA will make the payment to the creditor bank in dollars.

Debt, low per capita income adjustment with positive gradient and LDC adjustment

His delegation therefore supported the application of the debt burden adjustment based on the debt stock approach.

26. The international community has also provided assistance to debtor countries in the restructuring of their debt to commercial banks.

Debt sustainability indicators for Haiti are mixed.

It had some reservations about including the debt burden adjustment in the scale methodology, since that adjustment was already partly covered in the gross national product.

The realignment of the Heavily Indebted Poor Countries (HIPC) Debt Initiative after 1999 has considerably reduced the indebtedness of some 27 States.

The plan takes effect from 1 August 1998, and is centred around a new institution, the Indonesian Debt Restructuring Agency (INDRA).

With regard to the low per capita income adjustment, some members of the Committee considered that the threshold below which the adjustment was applied should be the average per capita debt adjusted GNI of all Member States, rather than Member States' average per capita GNI as in the current scale methodology.

(iv) Debt adjustment to be based on actual principal payments

The Committee also noted that the currency cost factor under the two track pension adjustment system had been included in valuations as a loading factor in calculating the liabilities.

(d) A debt burden adjustment in 1998 based on actual principal repayments and in 1999 and 2000 on the debt adjustment approach employed in the scale of assessments for the period 1995 1997

If the credit risks of the debtor and the corresponding risk agios have undergone any change after the issuance of the liability instrument, the current prices or interest rates of similar liability instruments shall be referred to and the adjustment to the differences between different financial instruments shall be taken into consideration in the determination of the fair value of the liability instrument.

(39) As regards the non adjusting events after the balance sheet date, it is required to, according to the provisions of the Accounting Standards for Enterprises No.29 Events after the Balance Sheet Date, state the contents of such events and estimate their impacts on the financial status and business performance of the Company, and, in case it is unable to make the estimation, it shall specify reasons therefor.

Other resources relating to reimbursements

Maximum adjustment

The equation can be used to estimate the adjusted fuel consumption using the average value of the HDD day index instead of the actual value.

A deal was finally reached in June 1998 on the restructuring of interbank debt, corporate debt and trade credits.

The debt to GNP and debt to export ratios remain high, about three and a half times those for the developing countries as a whole.

One approach is for the valuation, at least in the first instance, to be determined through agreement by the parties (being the debtor, or insolvency representative, and the secured creditor).

The debt burden adjustment should therefore be retained in the methodology.

For the same reason, the existing debt burden adjustment formula should be kept.

Renice Process

77. Some formal framework is needed to prevent moral hazard behaviour by debtors and to allow payments suspensions which are part of a process of cooperative and non confrontational debt renegotiation between debtors and creditors.23 There are no formal means for explicitly approving decisions by sovereign debtors to suspend payments.

The current debt burden adjustment should be retained, as should the current formula for the low per capita income adjustment.

35. The debt burden adjustment should continue to be based on both principal and interest payments.

73. The proposal to establish an international bankruptcy court for sovereign debtors that would be empowered to declare a standstill, negotiate a debt restructuring, promote adjustment by the debtor country, organize settlement terms and inject interim finance has been generally dismissed on several grounds.21, 22 First, private creditors would be reluctant to forego their recourse to national courts.

The debt ceiling absolutists grossly underestimate the massive adjustment costs of a self imposed sudden stop in debt finance. Such costs are precisely why impecunious countries such as Greece face massive social and economic displacement when financial markets lose confidence and capital flows suddenly dry up.

INDRA will provide that service only if creditors extend maturities of firms short term debt into loans with maturities of between one and four years.

(iv) The debt adjustment approach proposed by the Committee on Contributions in paragraph 41 of its report 3

(iii) The debt adjustment approach used in the preparation of the scale of assessments for the period 1995 1997

The Government followed up on the debt restructuring by directing the banks to arrange corporate restructuring of distressed indebted firms.

(iv) No adjustment for external debt

At the balance sheet date, all asset and liability balances are revalued using the United Nations official exchange rate as at 31 December.

The pension liability includes a loading for the assumed estimated cost of the two track pension adjustment system.

51. The Committee is aware that, in approving the scale of assessments for the period 1998 2000, the General Assembly decided to use a debt burden adjustment based on debt flow in 1998 and one based on a proportion of total debt stocks in 1999 and 2000.

For starters, when it comes to public debt, there is a big difference between the gross and net figures. While Japan s gross public debt, for example, is a massive 246 of GDP, the net figure, accounting for intra government debts, is 127 of GDP.