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

Debt, finance and development Paris Club

62 186. External debt and development towards a durable solution to the debt problems of developing countries

Official development assistance (ODA) and debt

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.

Debt for equity swaps Other debt for development swaps

(e) To reduce the unsustainable debt burden of developing countries through such actions as debt relief and, as appropriate, debt cancellation and other innovative mechanisms geared to comprehensively addressing the debt problems of developing countries, in particular the poorest and most heavily indebted ones

Sovereign debt for sustained development

213. Multilateral debt accounts for a high proportion of the external debt of a number of heavily indebted developing countries.

The evolving debt strategy has contributed to the improvement in the debt situation of a number of developing countries.

Debt situation of the developing countries as of mid 1998

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

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 contribute to economic growth and development

UNCTAD should continue its work in the area of debt, including the study of the application of debt for equity swaps for development.

The debt burden is crushing hopes for the relaunching of its development.

The Financing for Development Office is cooperating with UNDP to assess the relation between the achievement of Millennium Development Goals and debt sustainability in heavily indebted poor countries (HIPCs) and other critically indebted countries with the objective of providing an operational definition of development oriented debt sustainability.

Attaching conditions to debt cancellation will only impede development.

Debt overhang remained a major obstacle to development in the developing countries.

7. Emphasizes the great 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, and also emphasizes that creditors and debtors must share responsibilities for preventing unsustainable debt situations

Emphasizes the great 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, and also emphasizes that creditors and debtors must share responsibilities for preventing unsustainable debt situations

Emphasizes the high 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, and emphasizes that creditors and debtors must share responsibilities for preventing unsustainable debt situations

Deeply concerned that the debt service obligations remain high, that the factors determining the capacity to pay have not moved in consonance with the debt service obligations of the majority of developing countries and that the prospects for reducing the adverse effects of the debt burden on the development process in developing countries continue to be uncertain,

The external debt of SSA amounts to roughly 10 per cent of the total debt owed by developing countries to official creditors.

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

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

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

20. One of the main obstacles to sustainable development was the debt overhang and the debt service payment.

20. One of the major problems facing developing countries was the heavy debt burden whose service required the diversion of resources from development activities.

Questions related to the financing of Africa's development and debt were also discussed.

4. Stresses the need for new financial flows to debtor developing countries

Carefully managed debt was another valuable development tool.

B. Recent developments in debt renegotiations

(e) Encourage debt conversion programmes, particularly for social development.

Noting with concern the continuing debt and debt servicing problems of heavily indebted developing countries as constituting an element that adversely affects their development efforts and economic growth, and stressing the importance of alleviating once and for all, where applicable, their onerous debt and debt service burden with the aim of attaining a sustainable level of debt and debt service,

Urges that the approach in the debt settlement should cover all types of debt, including multilateral debt, and all indebted developing countries, and incorporate measures aimed at a once and for all reduction arrangement to reduce their debt burden to a scale that would allow them to resume their economic growth and development.

Concerned that many developing countries continue to struggle for a durable solution to their serious debt problems, where continuing debt and debt servicing obligations adversely affect their sustainable development,

Urgent consideration needed to be given to providing significant debt relief or restructuring for low and middle income developing countries that were not covered by the Heavily Indebted Poor Countries (HIPC) Initiative and whose debt burden was unsustainable.

Debt cancellation should not be tied to official development assistance.

Official development assistance, innovative sources of finance and debt

Efforts should be made to strengthen the capacity of developing countries to manage their debt, because growth, human development and the achievement of the Millennium Development Goals depended on maintaining sustainable debt levels.

Most least developed countries have benefited from these plans, whether in the form of ODA debt cancellation, rescheduling of official debts in the Paris Club, commercial debt buy backs or multilateral debt arrangement.

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

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

Moreover, when countries had no capacity to service their external debt, debt cancellation did not generate more resources for development, although it did improve debt indicators.