Debt sustainability and debt relief

Debt relief

The Threat of Greek Debt Relief

The False Promise of Debt Relief

Need for broader external debt relief

Of the 42 countries qualified as potentially eligible for debt relief in September 2004, 27 had received debt service relief of 32 billion.

Debt relief should be more extensive and generous.

Emphasizing the important role that private sector creditors play in debt relief and debt sustainability,

The middle income countries should receive substantial debt relief.

The current debt relief measures have been far from effective.

A third crucial issue was debt relief for poor countries.

Total debt relief accorded to the 27 countries that have reached either the decision point or the completion point, together with other debt relief measures, represents a two thirds reduction in these countries' overall debt stock.

21. Stresses that debt relief should contribute to development objectives, including poverty reduction, and in this regard urges countries to direct those resources freed through debt relief, in particular through debt cancellation and reduction, towards these objectives

Even for those benefiting from the HIPC Initiative, the economic conditions on which their debt relief was based have considerably worsened, and several countries, including those few that received debt relief, have backtracked into further unsustainable debt.

Debt relief, debt swaps or debt cancellation could offer important means for mobilizing resources for accelerating progress towards the water and sanitation goals.

First, debt relief arrangements should seek to avoid imposing any unfair burdens on other developing countries and secondly, resources made available for debt relief should not detract from ODA flows.

Agreement by the G 8 to debt relief is a major event, but we should not be fooled by the seeming magnanimity of the gesture much of the debt would not have been repaid in any case. More debt relief encompassing more countries and more debt (including bilateral debt) is needed.

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

It does, however, require more than just international aid or debt relief.

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.

Provide debt relief to all developing countries, including debt cancellation to HIPC, as well as extending the HIPC initiative, and resolving the debt problems of LDCs, low and middle income developing countries that are not eligible to debt relief under the HIPC and to explicitly link debt relief to the national development plans and efforts aimed at achieving the internationally agreed development goals including the MDGs, as well as other development goals.

We reduced them through debt write off and debt relief, as well as through the method of reducing our own debts.

We also believe that official development assistance should be combined with debt relief.

Furthermore, we hail recent initiatives in the areas of aid and debt relief.

Greece s recent financing package, overseen by the Troika, gave the country much less debt relief than it needed. But, even with significantly more public debt relief, Greece could not return to growth without rapidly restoring competitiveness.

The world knows what is needed fair trade, increased direct assistance and debt relief.

We also support the initiatives to attain substantial debt relief for all developing countries.

The quickest means of doing so is substantial and generous debt cancellation and relief.

The Group of Eight initiatives on debt relief and on Africa are important contributions.

There was a broad consensus that immediate and wide ranging debt relief was necessary.

We would like to express our gratitude to those donor countries which have provided debt and debt servicing relief to the affected countries.

7. Emphasizes in this regard that debt relief does not replace other sources of financing

7. Emphasizes in this regard that debt relief does not replace other sources of financing

The recent G8 agreement on debt relief for the poorest nations was a positive step.

The G 8 countries have agreed on substantial debt relief for a number of countries.

Figure 2 Official development assistance and debt relief provided to sub Saharan Africa, 2000 2003

Donors must also increase official development assistance (ODA) and provide Africa with greater debt relief.

This raises the question of the adequate level of debt relief which would truly allow debtor countries to grow out of their debt problems.

The amount of debt relief would then be determined on the basis of expected development assistance and the need to avoid a new debt overhang.

I wish to recognize the statesmanship displayed by members of the Paris Club, which recently granted African countries, among others, debt cancellation and debt relief.

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.

These commitments include significant increases in debt relief and aid. While there has been progress on implementing debt relief measures, the international community must follow through on the other part of its pledge, by delivering increased aid and promoting its better use.

For donor countries, issues included increased official development assistance (ODA), deeper debt relief and improved trade conditions.

There will be a review of Haiti's debt sustainability and, in particular, its eligibility for HIPC relief.

It was also proposed that transparency in the debt relief process should be enhanced through accountable mechanisms.