In UNHHSF, the ratio of current assets of 17.4 million to current liabilities of 12.0 million was 1.46 to 1.

(c) At 31 December 1997, the ratio of current assets to current liabilities was 1.46 1, below the recommended level of 2 1

Article 24 The Company shall present the ending balance, beginning balance and percentage increase or decrease of the following financial status indicators asset liability ratio, net asset liability ratio and liquidity ratio in tabular form.

Article 75 The Company shall present the ending balance, beginning balance (prior year) and percentage increase or decrease of the following financial status indicators in tabular form asset liability ratio, net asset liability ratio and liquidity ratio.

In UNICEF, current assets of 716 million exceeded current liabilities of 528 million by 188 million, disclosing a liquidity ratio of 1.36 to 1.

However, to trace these adequately requires more information, and on a more timely basis, on aggregated domestic stocks as well as flows (for example, levels of debt in corporate as well as banking sectors, private liquidity ratios and debt equity ratios, as well as borrowing flows).

20. At 31 December 1997, the current assets of UNICEF, amounting to 716 million, exceeded current liabilities of 528 million by 188 million, disclosing a liquidity ratio of 1.36 1.

The Board s computation of the liquidity ratio of the greeting card and related operations at 30 April 1997 disclosed that its current assets were 4.3 times the current liabilities, thus showing a favourable position.

10. The liquidity ratios in UNICEF, UNRWA and the United Nations Habitat and Human Settlements Foundation (UNHHSF) were below the accepted standard, which requires that the ratio of current assets to current liabilities be 2 to 1.

G. Liquidity available cash versus liabilities

Also the quick ratio, that is, the ratio of cash and term deposits ( 9.6 million) to current liabilities ( 12.0 million) had fallen from 0.98 1 at 31 December 1995 to 0.80 1 at 31 December 1997.

36. Africa s external debt burden is the highest among developing countries in terms of the ratio of external debt to GDP and its debt service ratio.

29. The Board noted that for all funds of the Foundation, the current ratio, that is, the ratio of current assets ( 17.4 million) to current liabilities ( 12.0 million), was 1.46 1, below the recommended level of 2 1.

Debt service ratio

83. The liquidity ratio determines an organization s ability to honour its short term liabilities from short term assets.

However, because of improved economic performance in the debtor countries, the overall ratio of debt to exports and the ratio of external debt to gross domestic product had declined to their lowest levels since the onset of the debt crisis.

Although Mexico s traditional debt indicators appeared sustainable, with moderate ratios of debt service, debt stock to exports and interest payments to exports (a ratio similar to the debt service ratio), the ratio of short term debt to reserves amounted to 131 per cent in 1997 (the ratio was much higher in 1996).

The liabilities were valued on the basis of a discount rate of 5.5 per cent.

Cleaning up high private sector debt and lowering public debt ratios by growth alone is particularly hard if a balance sheet crisis leads to an anemic recovery. And reducing debt ratios by saving more leads to the paradox of thrift too fast an increase in savings deepens the recession and makes debt ratios even worse.

Debt rate as percentage GDNI

Region Debt export ratio

As percentage of projected liabilities

Debt flows

The situation is all the more difficult since Africa s heavy debt burden has increased by 2.1 per cent compared to 1995, making Africa the continent with the highest debt to export ratio.

Although this position showed an improvement of 7.9 per cent over the position at 31 December 1995, it is still below the generally accepted norm, which requires that current assets should exceed current liabilities by two times.

Latin American debt indicators generally indicated a sustainable debt position for the region as a whole, with a debt service ratio of 12 per cent, debt stock to exports and to GNP ratios of 103 per cent and 43 per cent respectively, and a short term debt to reserves ratio of 71 per cent.

Debt rate ( GNP)

The personal debt to income ratio basically went from 65 percent to 135 percent in the span of about 15 years.

During the 1990s, large business groups of the Republic of Korea (chaebols) expanded quickly through financing from domestic banks, becoming highly leveraged (with an average debt to equity ratio of about 400 per cent in 1997).

Liability A liability is a present obligation of the organization arising from past events, the settlement of which is expected to result in an outflow of resources from the organization.

As a group, those countries debt burden remains severe, with a debt stock to export ratio of well over 300 per cent (far above the 200 per cent threshold used to indicate a debt overhang) and a debt stock to GNP ratio of 127 per cent in 1996 after several years of improvement.

This implies a deceleration of the growth rate of public indebtedness.

The actual interest rate refers to the interest rate adopted to cash the future cash flow of a financial asset or financial liability within the predicted term of existence or within a shorter applicable term into the current carrying amount of the financial asset or financial liability.

The ratios of debt service to exports and debt stock to GNP also point towards an improved position.

Article 23. Rate of payment of creditors 96 98 21

Article 23. Rate of payment of creditors

Sub Saharan Africa and the least developed countries, for example, have the highest ratios of external debt to GNP and of external debt to exports.

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

In particular, they should have paid greater attention to the sustainability of US mortgage and consumer debt. In 2007, the mortgage and consumer debt to GDP ratio was more than 90 , compared to 24 for net foreign debt.

The ratio of short term debt to the stock of foreign exchange reserves,3 which measures the ability of a country to meet its foreign obligations that mature fairly soon out of liquid sources of foreign exchange, is better suited for that purpose.

Article 17 19 . Rate of payment of creditors 182 183 40

But governments and investors know this, and the result has been much higher debt to GDP ratios than would have been possible under the gold standard. The eurozone as a whole has a debt to GDP ratio of 90 , which is high by any standard.

(b) the estimated long term rate of inflation used in computing the liability

In such a situation, the only option available for the Government was to seek debt restructuring to alleviate the debt burden or to have short term cash flow relief.

(c) A preliminary estimate of the ratio factor (i.e., the ratio of ICITO termination liabilities to the total liabilities for all active Fund participants) would be prepared in December 1998 based on data collected through 31 December 1997, and made available to ICITO.