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

As percentage of projected liabilities

liabilities under article 26 of the Regulations

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.

But the country continues to carry an excessive external debt, the servicing of which absorbed 75 per cent of the general State budget until recently in 1996 this was reduced considerably, to 57.6 per cent.

20. The Consulting Actuary suggested that quot liabilities quot in the context of article 16 (c) should be taken to be the liability under the Regulations on the date of termination plus cost of living adjustments, given the Board apos s endorsement of the use of termination liabilities in determining the proportionate share of ICITO.

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).

In that connection, some members expressed the view that the overall level of debt itself constituted a significant burden and that that fact was better reflected in the version of the debt burden adjustment based on a proportion of debt stocks of Member States affected.

quot (c) The amount of the proportionate share shall be determined by the Board after an actuarial valuation of the assets and liabilities of the Fund on the date of termination, provided that no part of the assets which are in excess of the liabilities shall be included in such share. quot

UNITED NATIONS JOINT STAFF PENSION FUND TO MEET THE LIABILITIES UNDER ARTICLE 26 OF THE REGULATIONS . 112

His delegation therefore supported the application of the debt burden adjustment based on the debt stock approach.

The total investment needed as well as the ideal proportion of debt and equity capital vary from project to project so that it would normally be difficult to establish a fixed sum or percentage that would be adequate for all instances.

The assets to liabilities ratio was down from 2.4 at the end of 2003 to 2.1 at the end of 2004, with assets of 264 million and short term liabilities of 123 million.

The assets to liabilities ratio was down from 2.4 at the end of 2003 to 2.1 at the end of 2004, with assets of 264 million and short term liabilities of 123 million.

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.

19. Article 16 (c) of the Regulations states that quot t he amount of the proportionate share shall be determined by the Board after an actuarial valuation of the assets and liabilities of the Fund on the date of termination, provided that no part of the assets which are in excess of the liabilities shall be included in such share quot .

Indebtedness must also be properly incorporated into the scale methodology.

51. The Committee is aware that, in approving the scale of assessments for the period 1998 2000, the General Assembly decided to use a debt burden adjustment based on debt flow in 1998 and one based on a proportion of total debt stocks in 1999 and 2000.

Liability

Liquid Liabilities

Liabilities

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.

Gradual fiscal consolidation reducing the projected future size of government spending, and hence future tax rates will have to be at the center of the effort. This should be combined with the mutualization of some portion of the liabilities of highly indebted countries defined as a debt to GDP ratio above, say, 60 or 70 and modest write downs in exchange for long term zero coupon bonds.

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.

Total Liabilities

Liabilities 4,030.

In that event, and notwithstanding the view of some members that the overall level of debt itself constituted a significant burden, the Committee also agreed that the adjustment should be based on data on actual principal repayments, rather than on a proportion of debt stocks, as in the current scale of assessments.

Article 27Where an enterprise (debtor) enters into an agreement with a creditor so as to substitute the existing financial liabilities by way of any new financial liability, and if the contractual stipulations regarding the new financial liability is substantially different from that regarding the existing financial liability, it shall terminate the recognition of the existing financial liability, and shall at the same time recognize the new financial liability.

21. If the termination liability for all active participants, under the Regulations and with the provision for cost of living adjustments, is greater than the value of assets remaining after the reserve for pensioners has been deducted, the proportionate share allocated to WTO would be less than the termination liability of that organization.

Table I.3 Available cash versus liabilities as at 30 June 2005 active missions

Mozambique, classified as one of the world s most indebted countries, has been admitted to the Heavily Indebted Poor Countries (HIPC) Debt Initiative designed to reduce Mozambique s debt to a sustainable level.

Article 57The financial liabilities refers to the following liabilities of an enterprise

Liability Accounts

Liability accounts

Environmental Liabilities

Total expenditure

The accrued

In most cases, fiscal deficits and lower export earnings were responsible for a deterioration of debt ratios.

In accordance with the Financial Regulations and Rules of the United Nations, there is no provision in the accounts for contingent liability.

Some insolvency laws provide, for example, that where a lender advances funds to an insolvent debtor in that period, it may be responsible for any increase in the liabilities of other creditors or the advance will be subject to avoidance in any ensuing insolvency proceedings.

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.

(d) The debt burden approach employed in the scale of assessments for the period 1995 1997

(d) The debt burden approach employed in the scale of assessments for the period 2004 2006

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.