Debt relief

Debt sustainability and debt relief

Secondly, debt cancellation and reduction should be extended and intensified.

The False Promise of Debt Relief

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

We reduced them through debt write off and debt relief, as well as through the method of reducing our own debts.

Europe s Inevitable Haircut

35. Uganda was the first country to be eligible under the HIPC initiative and will receive debt relief equivalent to US 338 million, or 19 per cent of its outstanding debt.

Debt relief measures have been undertaken by creditor countries both within the framework of the Paris Club and through their cancellation and equivalent relief of bilateral official debt.

Debt relief should provide additional resources ODA budgets should not be used to finance bilateral debt relief.

Moreover, debt relief measures had been taken.

Debt relief should be more extensive and generous.

In that context, we reiterate the calls for more radical action by the international community, in line with recommendations that debt relief should cover multilateral and bilateral debt and reduce debt stock and debt servicing by up to 100 per cent.

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

We urge debt relief to be broadened to cover both multilateral and bilateral debt for all low income African countries and urge substantial debt relief for middle income countries as well.

The middle income countries should receive substantial debt relief.

Total debt relief accorded to the 27 countries that have reached either the decision point or the completion point, together with other debt relief measures, represents a two thirds reduction in these countries' overall debt stock.

This raises the question of the adequate level of debt relief which would truly allow debtor countries to grow out of their debt problems.

A third crucial issue was debt relief for poor countries.

More vigorous debt relief measures are also needed.

Consideration should be given to extend the benefit of debt reductions under the Brady Plan to the new debtors .

Accordingly, the Panel recommends a 100 per cent debt cancellation for all low income countries, including those not eligible for debt relief under the HIPC initiative, and significant relief for middle income countries.

21. Stresses that debt relief should contribute to development objectives, including poverty reduction, and in this regard urges countries to direct those resources freed through debt relief, in particular through debt cancellation and reduction, towards these objectives

The current debt relief measures have been far from effective.

The G 8 countries have agreed on substantial debt relief for a number of countries.

First, debt relief arrangements should seek to avoid imposing any unfair burdens on other developing countries and secondly, resources made available for debt relief should not detract from ODA flows.

Developing countries also had to be given debt relief, including grant based financing and 100 per cent debt cancellation.

China had cancelled or reduced part of Africa's debt to China, some 31 HIPCs having had their debts cancelled, and had granted duty free treatment to African exports to China.

It also continued to support multilateral debt relief through the HIPC Initiative.

27. The HIPC initiative9 builds on the existing mechanism of debt relief, including the Paris Club.

Debt relief provided to countries with debt arrears merely amounts to an accounting exercise.16 ODA in the form of non cash assistance and debt relief17 does not bring additional budget support or foreign exchange transfer.

In such a situation, the only option available for the Government was to seek debt restructuring to alleviate the debt burden or to have short term cash flow relief.

The amount of debt relief would then be determined on the basis of expected development assistance and the need to avoid a new debt overhang.

We would like to express our gratitude to those donor countries which have provided debt and debt servicing relief to the affected countries.

Debt relief is, however, dependent on all creditors spreading the burden fairly among themselves.

Recent activities include the Regional Bureau for Africa s participation in the activities of Debt Relief International, an initiative funded by Austria, Denmark, Sweden and Switzerland to assist the HIPCs in preparing debt policies and strategies.

The most important recent development in debt relief for LDCs is the heavily indebted poor countries (HIPC) debt initiative.

Provide debt relief to all developing countries, including debt cancellation to HIPC, as well as extending the HIPC initiative, and resolving the debt problems of LDCs, low and middle income developing countries that are not eligible to debt relief under the HIPC and to explicitly link debt relief to the national development plans and efforts aimed at achieving the internationally agreed development goals including the MDGs, as well as other development goals.

It also welcomed the reference to the need to consider debt relief or restructuring for those middle income countries that had an unsustainable level of debt.

It does, however, require more than just international aid or debt relief.

Furthermore, we hail recent initiatives in the areas of aid and debt relief.

12 Thanks the IDB for its initiative to alleviate the Member States' debt.

However, that type of debt relief should not be at the expense of the poorest countries.

Debt relief granted by the international community should promote and reinforce economic reforms.

Debt relief for the countries of the region remains a major focus of our assistance to Africa, including through the Heavily Indebted Poor Countries (HIPC) Debt Initiative.