Restructuring Debt Restructuring

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

Proposals on debt restructuring frameworks

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

(3)The recombination of debts shall be subject to the Accounting Standards for Enterprises No.

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.

There have been many proposals on debt restructuring mechanisms.

A New Deal for Debt Overhangs?

The custody enterprise shall set down related schemes according to the agreement concerning custody, and reorganize the assets and liabilities of the custodian enterprise.

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

A. The HIPC initiative

Heavily Indebted Poor Countries (HIPC) Debt Initiative

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.

For many heavily indebted non HIPC and middle income countries, debt sustainability will require significantly more debt reduction or restructuring than has yet been proposed.

ESAF is a framework by which the IMF participates in the initiative for the heavily indebted poor countries.

Sovereign debt restructurings with private creditors

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.

The Lethal Deferral of Greek Debt Restructuring

A. The Heavily Indebted Poor Countries initiative

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

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.

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

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

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

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.

21. Calls for a comprehensive and sustainable solution to the external debt problems of African countries, including cancellation or restructuring for heavily indebted African countries not part of the Heavily Indebted Poor Countries Initiative that have unsustainable debt burdens, and emphasizes the importance of debt sustainability

The consultations also explored possible modalities of a debt workout mechanism aimed at efficient and equitable burden sharing among affected parties, such as the sovereign debt restructuring mechanism (SDRM) proposed by IMF.

The recent experiences of debt restructurings with private creditors are very diverse.

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.

Moreover, some debtor countries which have gone through debt restructurings soon resumed their access to capital markets.

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.

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.

21. Calls for a comprehensive and sustainable solution to the external debt problems of African countries, including cancellation or restructuring, as appropriate, and on a case by case basis, for heavily indebted African countries not part of the Heavily Indebted Poor Countries Initiative that have unsustainable debt burdens, and emphasizes the importance of debt sustainability

Paris Club creditors cancelled US 823 million of debt, and US 737 million was rescheduled.

(4)The debtor will probably become bankrupt or carry out other financial reorganizations

Table 3 Recent sovereign debt restructurings with private creditors main features

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

UNCTAD has continued to provide support to African and other debtor countries in preparing their negotiations on the rescheduling or restructuring of bilateral official debt in the framework of the Paris Club.

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.

7. The Panel also discussed the recent initiative by the World Bank and IMF on the debt of the heavily indebted poor countries.

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.

In these cases, debt restructurings produced a haircut on exchanged bonds.

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

But it worked, more or less. By contrast, the US court rulings indulgence of a parochial instinct to enforce written contracts will undermine the possibility of negotiated re structuring in future debt crises.