Light bars represent debt cancellation or rescheduling.

Paris Club debt reschedulings

As repeated reschedulings involve costs for the debtor countries and contribute to further accumulation of debt, the concept of reduction of the stock of debt (instead of the flows of debt service) was introduced by the Paris Club in 1994 and allowed for an exit from a repeated cycle of debt reschedulings.

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.

This obligation expired 31 12 2004 and no further provision has been made.

Both lending and borrowing countries must undertake effective measures to ensure debt forgiveness and debt rescheduling in order to solve that worldwide problem.

Large scale rescheduling and write offs reduced Egypt s external debt stock by 15 billion between 1987 and 1996.

To reprogramme the available amounts to meet the current needs of our countries

The objective is to tailor debt restructuring to the financial needs of the country concerned and to ensure debt sustainability and an exit from Paris Club debt reschedulings.

Sri Lanka and Indonesia have benefited from the tsunami debt moratorium.

Thus, the Paris Club's Evian approach relies on IMF Debt Sustainability Analysis for determining the terms of debt reschedulings.

Of the seven debtor countries that rescheduled in that year, only Jordan is non HIPC and is expected to graduate from the rescheduling process thereafter.

This is also designed to free HIPC countries from a seemingly endless sequence of debt rescheduling and refinancing arrangements, regardless of the soundness of the policies adopted by the debtor countries.

Multilaterally coordinated debt swaps for development projects were another possible form of debt relief for the countries concerned.

North Africa has benefited from major debt reschedulings since 1985.

IMF requested that the Government desist from repaying any debt until the entire quantum of debt is determined and rescheduled and the repayments are prioritized. (See table 7.

To address the debt burden problem, many African countries at first resorted to repeated debt rescheduling which focused on debt service flows, resulting in steadily increasing debt stocks and related service payments.

An obligation can be maintained on the basis of the payment schedule included in the signed contract with the contractor.

The basic goal of the HIPC Debt Initiative is to reduce the debt burdens of these countries to levels that can be serviced without recourse to further rescheduling, in the context of a sound development programme.20

In addition to estimating financing gaps and identifying the sources of financing (including different scenarios of debt rescheduling), DSA includes an analysis of debt dynamics to determine the stability of debt to GDP or debt to government revenue ratios.

At the end of this period, debtor countries may request a five year rescheduling of the deferred amounts.

Special arrangements have been made by the General Assembly relating to unliquidated obligations for certain peacekeeping operations.

Kuwait applauded the Group of Eight (G 8) and European Union initiatives to cancel the debts of the poorest and heavily indebted countries and hoped that the debts of all developing countries could be rescheduled and alleviated in accordance with the Paris Club's Evian approach.

It is worth noting that a growing portion of ODA to sub Saharan Africa consists of debt forgiveness and rescheduling.

The debts owed to the Fund by these countries were reduced by rescheduling them over a period of 40 years, including a 16 year grace period, with interest rates ranging from 0.5 per cent to 2 per cent.

Accordingly, he called for increases in aid, debt relief, and deepening of preferential market arrangements to decrease poverty.

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.

I call on the international financial institutions and donor countries to show understanding and to arrange as soon as possible a general cancellation of the multilateral and bilateral debt which is currently drowning our economies.

The super priority ranks ahead of administrative creditors.

24. The total amount of debt rescheduled within the Paris Club in 1997 is estimated at approximately 6.3 billion.

Furthermore, most of the debt reduction that has taken place in the HIPC countries has taken the form of writing off bilateral debts already rescheduled or in arrears, thus freeing up a smaller amount of real resources for poverty reduction spending than had been originally foreseen.

The existing international strategies for debt reduction and rescheduling were insufficient to alleviate the debt burden of heavily indebted poor countries.

11. Also stresses the need to find a solution for the debt problems of heavily indebted low and middle income developing countries that are not eligible for debt relief under the Heavily Indebted Poor Countries Initiative, and in this regard continues to encourage the exploration of mechanisms to comprehensively address the debt problems of those countries, which may include debt for sustainable development swaps or multicreditor debt swap arrangements, as appropriate

Media arrangements and services

(f) To encourage exploring innovative mechanisms to comprehensively address the debt problems of developing countries, including middle income countries, and countries with economies in transition such mechanisms may include debt for sustainable development swaps, or multi creditor debt swap arrangements, as appropriate

(f) To encourage exploring innovative mechanisms to comprehensively address the debt problems of developing countries, including middle income countries, and countries with economies in transition such mechanisms may include debt for sustainable development swaps, or multi creditor debt swap arrangements, as appropriate

The decision to seek a rescheduling rests with the debtor country.

The international community has, so far, failed to develop effective and equitable arrangements for restructuring sovereign debt, despite the clearly dysfunctional and problematic consequences of past international public debt crises. This prevents timely debt workouts when needed, effectively impeding recovery.

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.

The liquidation by the Secretariat of cost sharing obligations with regard to the previous biennium has not yet been obtained, pending the definition of new financial arrangements with the United Nations.

That arrangement would involve private creditors in negotiating terms of a restructuring the provision of financial support by IMF can improve the bargaining position of the debtor, and combined with the adjustment programme, can signal to the unpaid creditors that their interest is best served by quickly reaching an agreement with the debtor.

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

For countries which have debt sustainability problems and are committed to policies implemented in the framework of IMF programmes that will allow an exit from future Paris Club reschedulings, the Paris Club will apply a comprehensive debt treatment, including flow treatment, stock reprofiling or stock reduction.

19. Invites creditors and debtors to continue to use, where appropriate and on a case by case basis, mechanisms such as debt swaps for alleviating the debt burden of low and middle income developing countries with an unsustainable debt burden that are not eligible for the Heavily Indebted Poor Countries Initiative, and takes note of the discussions and assessment by the Paris Club of the proposal for Debt for Equity in Millennium Development Goal Projects

The first phases of that treatment, from 1982 to 1988, relied on debt reschedulings and new liquidity support, together with a market menu of options, which allowed limited amounts of voluntary debt reductions through debt securitization at a discount, debt equity swaps and debt buy backs.