Debt sustainability and debt relief

Debt sustainability indicators for Haiti are mixed.

Oral statements in plenary on CTT and debt sustainability.

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

Debt sustainability is also affected by vulnerability to external shocks.

Thus, the Paris Club's Evian approach relies on IMF Debt Sustainability Analysis for determining the terms of debt reschedulings.

33 UNCTAD is implementing a project on development strategy and debt sustainability, which also integrates aspects of debt management.

There should also be an undertaking to review the debt sustainability criteria.

Invites donor countries, taking into account country specific debt sustainability analyses, to continue their efforts to increase bilateral grants to developing countries, which could contribute to debt sustainability in the medium to long term, and recognizes the need for countries to be able to invest, inter alia, in health and education while maintaining debt sustainability

Sustainability of public debt has replaced sustainability of private debt as the biggest threat to financial stability, and the focus of debate about the US current account has shifted from the sustainability of foreign debt to the impact of reducing the external deficit on growth and employment. The dilemma facing US policymakers is how to stimulate growth while lowering the level of total debt.

How can the Secretary General's proposed definition of debt sustainability be made operational?

19. Invites donor countries, taking into account country specific debt sustainability analyses, to continue their efforts to increase bilateral grants to developing countries, which could contribute to debt sustainability in the medium to long term, and recognizes the need for countries to be able to invest, inter alia, in health and education while maintaining debt sustainability

19. Invites donor countries, taking into account country specific debt sustainability analyses, to continue their efforts to increase bilateral grants to developing countries, which could contribute to debt sustainability in the medium to long term, and recognizes the need for countries to be able to invest, inter alia, in health and education while maintaining debt sustainability

21. Invites donor countries, taking into account country specific debt sustainability analyses, to continue their efforts to increase bilateral grants to developing countries, which could contribute to debt sustainability in the medium to long term, and recognizes the need for countries to be able to invest, inter alia, in health and education while maintaining debt sustainability

How can the resolution of debt sustainability problems facing middle income countries be facilitated?

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.

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

In June 2004, the Evian approach was applied to examine the debt of Gabon, and the Debt Sustainability Analysis concluded that Gabon's debt is sustainable in the short term.

14. Reaffirms also that reviews of debt sustainability should also bear in mind the impact of debt relief on progress made towards the achievement of the development goals contained in the Millennium Declaration and that debt sustainability analysis at the completion point needs to take into account any worsening global growth prospects and declining terms of trade in addition, efforts to strengthen the transparency and integrity of debt sustainability analysis should continue

For countries that have reached the completion point, the challenge is to achieve lasting debt sustainability and avoid falling into a new debt trap.

Long term sustainability of debt depends mainly on the growth and export prospects of debtor countries.

We are attentively following the international debate on the concept of the sustainability of external debt.

It follows that debt sustainability should be part of the overall development strategy of a country, addressing debt, trade and finance in a coherent framework.

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.

To move forward, we should redefine debt sustainability as the level of debt that allows a country to achieve the Millennium Development Goals and reach 2015 without an increase in debt ratios.

7. Stresses that debt sustainability depends upon a confluence of many factors at the international and national levels, underscores that no single indicator should be used to make definitive judgements about debt sustainability, and emphasizes that country circumstances should be taken into account

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

Under the Evian approach, the Debt Sustainability Analysis (DSA) undertaken by IMF for each debtor country plays a critical role in shaping the outcome of debt restructuring.

However, much more needed to be done to assist countries that had reached the completion point but continued to experience severe debt sustainability and debt servicing problems.

8 United Nations Conference on Trade and Development (2004), Economic Development in Africa Debt Sustainability Oasis or Mirage?

The Paris Club Agreement with Iraq of November 2004 represents a significant step towards long term debt sustainability.

ODA receipts and debt sustainability, landlocked and transit developing countries and developing countries as a whole, 2000 2003

It narrows government budget deficits by increasing tax revenues and limiting welfare spending. By raising the denominator of the debt GDP ratio, it enhances confidence in debt sustainability.

(b) We emphasize that debt sustainability is essential for underpinning growth and underline the importance of debt sustainability to the efforts to achieve national development goals, including the Millennium Development Goals, recognizing the key role that debt relief can play in liberating resources that can be directed towards activities consistent with poverty eradication, sustained economic growth and sustainable development

11. Reaffirms that reviews of debt sustainability should also bear in mind the impact of debt relief on progress towards the achievement of the development goals set out in the Millennium Declaration and the fact that debt sustainability analysis at the completion point needs to take into account any worsening global growth prospects and declining terms of trade

Invites donor countries, taking into account country specific debt sustainability analyses, to continue their efforts to increase bilateral grants to developing countries, which could contribute to debt sustainability in the medium to long term, and stresses the need to take steps to ensure that resources provided for debt relief do not detract from official development assistance resources

The sustainability of a country's external debt is determined by the projected flows of revenues and expenditures, including those for servicing debt, as well as changes in exchange rates.

In this context, eurozone leaders must ask themselves tough questions about the sustainability of the current system for managing debt in the EMU. They should begin by considering the two possible models for ensuring stability and debt sustainability in a monetary union the mutualization model and the liability model.

While some of our countries have benefited from debt relief strategies including the Highly Indebted Poor Countries Initiative that has not as yet resulted in debt sustainability in the region.

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.

To move forward, the Secretary General proposed that debt sustainability should be redefined as the level of debt that allowed a country to achieve the Millennium Development Goals and reach 2015 without an increase in its debt ratios.

Several speakers expressed their support for the Secretary General's proposal to define debt sustainability as the level of debt that would allow a country to achieve the Millennium Development Goals by 2015 without an increase in debt ratios.

12. Notes that it is important for the International Monetary Fund and the World Bank to continue their efforts to strengthen the transparency and integrity of debt sustainability analysis and to consider any fundamental changes in countries' debt sustainability caused by natural catastrophes, severe terms of trade shocks or conflict when making policy recommendations, including for debt relief, as appropriate

15. Notes that it is important for the International Monetary Fund and the World Bank to continue their efforts to strengthen the transparency and integrity of debt sustainability analysis and to consider any fundamental changes in countries' debt sustainability caused by natural catastrophes, severe terms of trade shocks or conflict when making policy recommendations, including for debt relief, as appropriate

18 See IMF Debt Sustainability in Low Income Countries Further Considerations on an Operational Framework and Policy Implications, 10 September 2004.