Debt buy back and Brady bonds11

Debt and low per capita income adjustment

Note 4. Miscellaneous income from procurement services

Creditors of a corporation cannot recover debts from a shareholder.

There have been reductions in the ratios of debt to gross national income and debt service to export earnings since 2000, due to strenuous efforts at repayment by developing countries and some debt relief.

C. Balance of payments constraint and the debt burden

On the subject of debt, the United Nations is requested to support the efforts currently being made by the Commission of the African Union for a thorough review of debt, leading to debt cancellation for the heavily indebted poor countries and to debt reduction or cancellation for middle income indebted countries.

We urge debt relief to be broadened to cover both multilateral and bilateral debt for all low income African countries and urge substantial debt relief for middle income countries as well.

The new non concessional debt more than offset the debt relief received, although export earnings have increased since 2001.

Recent debt strategies in the cases of middle income countries

Review allotment reports, in particular outstanding obligations, in conjunction with Purchase and Transport Service

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.

(t) Account debtor means a person liable for payment of a receivable.

4. If the debtor receives notification of more than one assignment of the same receivable made by the same assignor, the debtor is discharged by paying in accordance with the first notification received.

Debt, low per capita income adjustment with positive gradient and LDC adjustment

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.

This procurement service fee is accounted for as miscellaneous income.

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.

The question of debt sustainability analysis is also key to the resolution of the debt crisis of other low and middle income countries.

2. The debtor may raise against the assignee any other right of set off, provided that it was available to the debtor at the time notification of the assignment was received by the debtor.

The middle income countries should receive substantial debt relief.

B. Debt workouts for middle income countries Tables

At delivery, the obligation is liquidated and the receivable is correspondingly cancelled.

They have expanded overseas through acquisitions.

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

They have had to go further and further into debt to purchase the technology that they cannot produce on their own, to the extent that they can no longer honour their debts.

With due deference to the 2003 Evian approach , there has, however, been no real initiative to address the debt of low income and middle income developing countries that are not part of the Heavily Indebted Poor Countries (HIPC) Debt Initiative process.

(d) If the account debtor receives notification of more than one assignment of the same receivable made by the same assignor, it is discharged by paying in accordance with the first notification received

quot With the exception of matters which are settled in this Convention, the assignability of a receivable, the right of the assignee to request payment, the debtor apos s obligation to pay as instructed in the notification of the assignment, the discharge of the debtor and the debtor apos s defences are governed by the law governing the receivable to which the assignment relates of the country in which the debtor is located . quot

This has occurred largely through buy backs supported by the World Bank s Debt Restructuring Facility and the IMF s Economic Structural Adjustment Facility for low income countries and through officially supported debt and debt service reduction programmes (Brady operations) for middle income countries.

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 the lower middle income countries, the Paris Club also allowed some debt reductions through debt conversions.

The better than expected cash position resulted from additional voluntary contributions received, interest income earned, savings on prior period obligations as well as delays in the liquidation of current period obligations.

25. The financial report and accounts reflect UNICEF income, expenditure, assets and liabilities, including the net operating income, assets and liabilities of the greeting card and related operations.

The income and expenditures relating to procurement services amounted to

(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

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.

Some OFDI leads to losses instead of profits, especially if the assets acquired are overpriced or not in the acquirer's core area of business.

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

Meanwhile, the current French proposal of a voluntary rollover by banks is flopping, as it would impose prohibitively high interest rates on the Greeks. Likewise, debt buybacks would be a massive waste of official resources, as the residual value of the debt increases as it is bought, benefiting creditors far more than the sovereign debtor.

6. If the debtor receives notification of the assignment of a part of or an undivided interest in one or more receivables, the debtor is discharged by paying in accordance with the notification or in accordance with this article as if the debtor had not received the notification. If the debtor pays in accordance with the notification, the debtor is discharged only to the extent of the part or undivided interest paid.

An exception to the requirement for recognition is given for collection of claims which are property of the debtor, such as accounts receivable.

15. Encourages the Paris Club, in dealing with the debt of low and middle income debtor countries that are not part of the Heavily Indebted Poor Countries Initiative to take into account their medium term debt sustainability in addition to their financing gaps, and takes note with appreciation of the Evian approach of the Paris Club in providing terms of debt relief tailored to the specific needs of debtor countries while preserving debt cancellation for heavily indebted poor countries

Promote a comprehensive and durable solution to the external debt problems of African countries, including through the cancellation of 100 per cent of multilateral debt consistent with the Heavily Indebted Poor Countries Initiative and significant reduction or cancellation of the debt of heavily indebted low and middle income developing countries that are not part of the Initiative

(d) Assess the debt sustainability of middle income countries in Africa and elsewhere and extend appropriate debt relief, if needed