A New Deal for Debt Overhangs?

15. Regarding the debt problem, his Government had signed an agreement with the Paris Club on a comprehensive mid term restructuring of its debt, and another accord with the creditors of the London Club on rescheduling its commercial debt.

39. In 1997, four low income countries concluded debt and debt service reduction agreements with commercial banks.

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

(c) Such an agreement may be modified only by an agreement in a writing signed by the account debtor.

(i) Providing continued support for debt management

An international debt framework commission would aim for a coherent and comprehensive debt restructuring when requested to do so by the debtor country.

Heavily indebted middle income countries must organize their efforts to arrive at joint agreements with the world's creditors.

A. The HIPC initiative

Heavily Indebted Poor Countries (HIPC) Debt Initiative

(3) to set down the scheme for debt disposal or inheritance through negotiating with the creditors

Others looked to a sharp break from current approaches to negotiated debt restructurings.

It was seeking to reach an agreement with the International Monetary Fund for the inclusion of Nicaragua in the Heavily Indebted Poor Countries Debt Initiative.

We recognize that the agreement does not cover bilateral debt and debt owed to other multilateral credit institutions, and we call for measures to address those issues in order to address the debt burden in Africa comprehensively.

According to one report, the deal potentially covers 80 billion in private debt.

14. Calls upon bilateral and multilateral donors to contribute to the Highly Indebted Poor Countries Trust Fund in order to help the African Development Bank meet its share of Initiative related costs

A. The Heavily Indebted Poor Countries initiative

28. The implementation of the HIPC initiative is based on the debt sustainability analysis of debtor countries.

This year, Russia intends to announce the cancellation of 2.2 billion for the poorest African States, on a bilateral basis within the framework of the Heavily Indebted Poor Countries Debt Initiative.

(c) coordination of the administration and supervision of the debtor apos s assets and affairs

(c) coordination of the administration and supervision of the debtor apos s assets and affairs

There was an urgent need for an international consensus on the necessary strategies for reducing the debt of the most heavily indebted developing countries.

209. In this context, the Heavily Indebted Poor Countries Debt Initiative endorsed by the Interim Committee of the International Monetary Fund and the Development Committee of the World Bank and the International Monetary Fund, which is designed to enable eligible heavily indebted poor countries to achieve a sustainable debt situation through coordinated action by all creditors on the basis of adjustment efforts by the debtor countries, is welcomed.

(2) As between the assignor and the debtor, articles ... may be excluded or varied by agreement.

Concerted efforts must be made to solve the debt problem, which was an impediment to the realization of sustainable development.

quot (c) coordination of the administration and supervision of the debtor s assets and affairs

quot (c) coordination of the administration and supervision of the debtor apos s assets and affairs

Indeed, given the distressing debt indicators for Indonesia it is likely that economic stability would not have been possible without a debt restructuring agreement.

It was thus recommended that civil society, as well as debtors and creditors, be involved in the debt resolution process.

With political will a global deal on Aid, Trade and Debt Relief is possible.

He welcomed the tentative agreement reached on the base period, the debt burden adjustment and the scheme of limits.

1. The debtor may agree with the assignor in a writing signed by the debtor not to raise against the assignee the defences and rights of set off that it could raise pursuant to article 18. Such an agreement precludes the debtor from raising against the assignee those defences and rights of set off.

C. The Group of Eight proposals for debt cancellation for Heavily Indebted Poor Countries

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

A number of proposals are currently under discussion for additional reduction in debt stocks or in debt service for HIPC and non HIPC, International Development Association (IDA) only countries.

While the Committee had reached tentative agreement on the base period, the debt burden adjustment and the scheme of limits, it had been unable to reach agreement on a ninth proposal.

Extended negotiations commenced with IMF on a third revised agreement that would include provisions on the handling of the debt crisis by the Government.

India did its part by writing off the debt owed by African countries under the HIPC Initiative and by restructuring commercial debt.

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

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.

Noting also that the evolving international debt strategy is designed to generate debt sustainability for developing countries and, in this connection, stressing the need for a full and swift implementation of those initiatives that will further assist developing countries, in particular the poorest and heavily indebted countries, especially in Africa, in their efforts to improve their debt situation in view of their high and unsustainable levels of total debt stock and servicing burdens,

Commercial bank debt is renegotiated within the London Club, while the International Development Association (IDA) Debt Reduction Facility provides funding for the buy back of commercial bank debt of low income countries.

Welcoming the decision to undertake a comprehensive review of the Heavily Indebted Poor Countries Debt Initiative in 1999,

Agreements under the Brady Plan, with financial contributions from IDA and bilateral donors, allowed Côte d Ivoire to reduce its debt to commercial banks by 4.1 billion in nominal terms, or close to 63 per cent of the total amount restructured, and allowed Viet Nam to reduce its commercial bank debt by 237.6 million, equivalent to 30 per cent of the amount restructured.

(c) coordination of the administration and supervision of the debtor s assets and affairs