1. Commercial bank debt

The typical bank is capitalized with equity, long term debt, short term debt, and deposits.

Under the international debt strategy for addressing commercial bank debt, progress has been very substantial.

Otherwise, bank runs and debt panics will be rampant.

(iii) Measures for the reduction of commercial bank debt

The link between sovereign debt and bank debt has to be broken once and for all.

1. Solution to debt problem Joint programme on External Debt Management with UNCTAD and World Bank

16 World Bank, World Debt Tables, 1993 94, p. 7.

There is more than the debt to the World Bank

In the treatment of the debt of countries in debt crisis, international policy has evolved very considerably, particularly as regards commercial bank debt.

51. The success of the international debt strategy lay mainly in defusing the crisis involving commercial bank debt.

Where realistic debt restructuring scenarios indicate capital shortfalls, across the board conversion of bank debt into equity will be necessary.

In all debt distressed countries, arrears on commercial bank debt have had an adverse impact on badly needed trade financing.

38. As in the past, the external debt data used in the preparation of the scale represent debt stock information obtained from World Bank World Debt Tables.

But there remain little new securitization and bank debt offerings without government backup.

Also, it does not formally violate the policy prohibiting World Bank debt relief.

In the case of commercial bank debt, most of the heavily indebted middle income countries had succeeded in restructuring their debt.

As regards commercial bank debt, the agreements completed under the Brady plan had brought about a significant reduction in commercial bank debt, and had contributed to improved creditworthiness resulting from domestic economic reforms.

The World Bank receives tapes and diskettes containing external debt statistics (WLDBNK 2) from approximately 20 countries through its Debt Reporting System.

Following that, the restructured bank can be recapitalized by raising new debt and equity.

Only the European Central Bank could implement true socialization of national debt in the eurozone.

Socializing bank debt is both unjust and will result in a future misallocation of resources.

From the early days of the developing country debt crisis, official and private creditors have sought to restructure debt in collective creditor forums the Paris Club for official bilateral creditors and bank advisory committees for bank creditors.

According to Central Bank estimates, total external debt at the end of June 2002 was over 6.4 billion, and domestic debt amounted to 1.7 billion.

By March 1993, creditors representing 97 per cent of Brazil apos s outstanding commercial bank debt had decided to participate in its debt rescheduling programme.

Unlike some months ago, now the European Central Bank can intervene and buy troubled countries debt.

18. Multilateral debt was growing in volume and debt servicing was posing more and more problems for IMF, the World Bank and the regional development banks.

Similarly, Guyana will have its debt reduced by more than 8 of GDP. The level of debt relief will be even greater once the World Bank and the African Development Bank finalize their own programs in the months ahead.

There is no secondary market for debt owed to official creditors, but a strict assessment of repayment prospects on this debt would in principle be of the same nature as for commercial bank debt.

History offers countless examples of the misallocation of resources that can result from socialization of bank debt.

The World Bank and IMF had acknowledged Pakistan apos s commitment to fulfilling its debt related obligations.

It had submitted a debt for nature swap proposal to the Consultative Group of the World Bank.

The central government is arguably solvent, but a significant chunk of municipal and provincial bank debt seems underwater.

Money market funds from the United States are returning, albeit cautiously, to resume funding of European bank debt.

In 2012, American prime money market funds, which buy bank and corporate debt, were worth nearly 1.5 trillion.

A key feature of the strategy has been the availability of IMF, World Bank and Inter American Development Bank financial support to collateralize the new reduced debt instruments.

To do the same thing with bank debt could pull hitherto sound economies into the abyss, because bank s balance sheets are much larger than the volume of government debt.

The African countries, whose commercial bank debt was small, owed large amounts to Governments or multilateral institutions and the realistic prospects of their repaying their debt were considered slim.

This is the debt relief promised, a promise we must keep at the World Bank and IMF annual meetings.

One Member State asked if a bank could recover the debt of a listed individual from a frozen account.

24. In the area of debt management, the UNCTAD secretariat has continued cooperation with the Islamic Development Bank (IDB).

This could have been a straight debt from a bank, or this could have been via a bond issue.

In an ideal world, Europe would deal with its excessive debt burdens through a restructuring of Greek, Irish, and Portuguese liabilities, as well as municipal and bank debt in Spain.

As to commercial bank debt, the current approaches to debt restructuring appear to have been effective in practice, and they seem to be available to increasing numbers of debtor countries.

For middle income countries in marked contrast to the case of commercial bank debt the Paris Club currently offers no options that reduce the net present value of debt obligations.