28 Bilateral investment treaties which include bonds in the definition of investment can lead to claims against debtors for expropriation in the context of debt restructuring.

Sovereign obligations, such as bonds, are commonplace in the capital markets, and demonstrate strong investor demand and confidence.

It was noted that improving the ratings of debt issuance to investment grade by securitization and other mechanisms could lead to opening the door to large global pools of institutional investment.

This is one of a number of options for relieving external debt burdens in poor countries, including debt cancellation, in order to free resources for investments in essential infrastructure and services.

For example, the Global Committee of Argentine Bondholders has considered the initiation of international investment arbitration, following the Argentine Government's decision not to reopen the debt exchange for investors who have not tendered their bonds.

In other words, investors are expecting to receive only about half of what they are owed. The hope is that the reduction in borrowing costs on new loans, plus the austerity programs promised by governments, will enable bond prices to recover to par without the need for the creditor banks to take a hit.

The most likely explanation for this public investment shortfall is fiscal constraints. And, indeed, debt and unfunded non debt liabilities increasingly weigh down public sector balance sheets and pension funds, eroding the foundations of resilient, sustainable growth.

We welcome the cancellation of the debt of the most heavily indebted poor countries, but we believe that a long term solution of the debt problem of developing countries should not obstruct investment.

The problems associated with foreign direct investment and the debt situation in developing countries also deserved serious review.

The Fund now needed investment income to meet its liabilities therefore, in determining the strategy and placement of investments this factor was taken into account.

Underinvestment in infrastructure (including deferred maintenance) is widespread where the consequences are uncertain and or not immediate. In reality, underinvestment and investment with debt financing are equivalent in one crucial respect they both transfer costs to a future cohort.

(2) organizing the implementation of such financial schemes as fund raising, investment, guarantee, donation, reorganization and profit distribution and so on, fulfilling the obligation of debt repayment of the enterprise faithfully

6 Defined as net resource flows minus the interest payments on long term debt and profit remittances on account of FDI.

(iii) compelling testimony or the delivery of information concerning the assets and liabilities of the debtor

Governments may be able to mobilize funding through debt swaps, where donors exchange debt for local currency investment in environmental protection, such as waste water treatment.

Concessions that the developed countries could make to Africa included meeting their official development assistance (ODA) commitments, debt cancellation and the conversion of debt into equity investments.

In this regard, Spain actively participates in the cancellation of debt to benefit the heavily indebted poor countries and is preparing a plan to swap debt for public investment in key human development areas in Latin America.

quot (d) compelling testimony or the delivery of information concerning the assets and liabilities of the debtor

Because of the close linkages between external debt and the government budget, debt relief would also free resources needed for government investment in physical and social infrastructure.

(d) providing for the examination of witnesses, the taking of evidence or the delivery of information concerning the debtor apos s assets, affairs, rights, obligations or liabilities

(d) providing for the examination of witnesses, the taking of evidence or the delivery of information concerning the debtor apos s assets, affairs, rights, obligations or liabilities

Debt constrained structural adjustment policies compounded the problem through a decline in agricultural investment.

Debt relief had the potential to substantially increase investment in sectors that were crucial for achieving development goals.

As a result, these extrabudgetary funds generally do not have obligations in excess of their available cash and investments.

quot (d) providing for the examination of witnesses, the taking of evidence or the delivery of information concerning the debtor s assets, affairs, rights, obligations or liabilities

Debt, finance and development Paris Club

Special communiqué on the swapping of foreign debt for investment in education

Special communiqué on the swapping of external debt for investment in education

As everyone at the IMF knows, a debt overhang is a vast unfunded tax liability that says to investors enter at your own risk. At any time, your investments, profits, and hard work may be taxed away to feed the dead hand of past lenders.

Stock exchanges are another source, as are tax collection foreign direct investment debt forgiveness, which also releases some money long term bonds borrowing and finally, pension funds.

With a view to increasing investment to promote social inclusion and contributing to the relief of external debt in Latin America, and in the context of the search for innovative mechanisms, we undertake to encourage as many bilateral and multilateral creditors as possible to swap debt for social investment, particularly in the area of education.

(b) Financial incentives provide finance for new investment or to defray capital or operation costs.

Thus, a debt equity swap of less than 7.5 of the creditors investment would be enough to compensate for the banks losses. And, even if the banks private depositors, whose claims are 39 of the aggregate balance sheet, were excluded, the debt equity swap necessary to compensate for a loss of up to 100 of the equity would be less than 12 of the creditors investment volume.

The three sub themes were (i) Policies and strategies (ii) Trade, investment and private flows and (iii) Official development assistance (ODA), innovative sources of financing and debt.

(e) Protection of the insolvency estate against the actions of creditors, the debtor itself and the insolvency representative, and where the protective measures apply to secured creditors, the manner in which the economic value of the security interest will be protected during the insolvency proceedings

Thus, the eurozone faces three choices even more austerity for the heavily indebted countries, socialization of the debt across Europe, or a creative re profiling of debt, with investors forced to accept losses sooner or later.

It was noted that the stay was meant to cover all actions capable of affecting the assets of the debtor or increasing the debtor s liabilities.

(7)Any seriously disadvantageous change has occurred to technical, market, economic or legal environment, etc. wherein the debtor operates its business, which makes the investor of an equity instrument unable to take back its investment

Other assets, net of liabilities, supplement investments to from the balance of unexpended resources.

(i) Encourage increased levels of investment and funding for sustainable development in mountain regions, including through innovative financial mechanisms and approaches such as debt relief and payment for environmental services

(33) As regards investment yield, it is required to make disclosure of investment yield in current year and that in last year by securities category (like government securities and funds, etc.).

Likewise, while limiting the deductibility of net interest for corporations, as many other developed countries have done, would broaden the tax base and discourage excessive reliance on debt financing, it would increase the tax burden on major investments in physical capital, which are often debt financed.

The Fund invests globally and has liabilities in a number of currencies.

Debt not only caused an outflow of capital to pay the principal and interest on external debt, but also hindered efforts to attract foreign direct investment and promote economic activity, a fact not reflected in the debt flow approach.

(a) Assets of the debtor, including the debtor's interest in encumbered assets and in third party owned assets