3. DEVELOPMENT FINANCE AND DEBT

Debt, finance and development Paris Club

Development finance and debt 9.7 52.3

Subprogramme 3. Development finance and debt

SUBPROGRAMME 3. DEVELOPMENT FINANCE AND DEBT

Development finance, resource flows and external debt

(UN D 15 343) Development finance and debt

Official development assistance, innovative sources of finance and debt

Debt relief should provide additional resources ODA budgets should not be used to finance bilateral debt relief.

Sub theme 3 Official development assistance, innovative sources of finance and debt

Long term sustainability of debt would require additional resources to finance investment.

Recycling debt to finance economic, social and environmental projects should be considered.

The debt ceiling absolutists grossly underestimate the massive adjustment costs of a self imposed sudden stop in debt finance.

11A The orientation of work for this subprogramme will continue to be in the broad areas of finance for development, including the future evolution of the international debt strategy, debt reorganization, debt management and finance for environmental protection.

PRINCETON Europe s debt crisis has piqued Europeans interest in American precedents for federal finance.

But when local governments are barred from debt finance, they look for other means.

One major concern relates to the destabilizing and deflationary feedbacks among trade, debt and finance.

There is a continuing need to improve the systemic coherence between trade, debt and finance.

There is a continuing need to improve consistency and systemic coherence among trade, debt and finance.

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.

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

One possible means of achieving that end would be to recycle the debt by creating a special fund to finance development projects using debt service payments.

The US needs China to finance its mounting debt, and China needs Americans to buy its products.

For most HIPC countries, this would require exclusively grant based finance and 100 per cent debt cancellation.

This would require that considerations of debt servicing be based on the need to finance the Goals.

The oldest rule in personal finance is to avoid debt that is, never spend more than you earn.

In the year 2004, UNITAR trained over 950 debt and finance managers using the e learning training approach.

Advisory services and training will also be provided in respect of development finance, debt policy and resource flows.

In the mid 1980 s, the US became a net debtor, relying increasingly on foreigners to finance its debt.

Central banks and finance ministries are also complicit, since debt gets bailed out far more aggressively than equity does.

In several cases, the early strategy even aggravated the problem by arranging new lending to help finance existing debt servicing, which mainly postponed a more severe debt servicing crisis.

Since the debt crisis erupted more than a decade ago, the international community has sought to alleviate the immediate debt servicing burden of countries in debt crisis and reduce the quot debt overhang quot that impeded a return to normal access to international finance.

The Civil War revealed the centrality of a common foundation of morality to Hamilton s approach to debt and public finance.

Debtor countries pay substantial risk premiums to finance their debt, which is reflected in their high economy wide borrowing costs.

Then came the eurozone s sovereign debt crisis, with its roots in lax government finance in some (mostly southern European) countries.

For most HIPC countries, this will require exclusively 100 per cent debt cancellation and 100 per cent grant based finance.

Taxation remains the dominant source of government revenue in most developed countries. But the role of debt finance has been growing and, with it, the need to refinance old debt when total expenditure, including debt service, exceeds total revenue.

Local currency government debt markets have performed fairly well during the crisis, while local currency corporate debt markets have played a more modest role as a vehicle for longer term finance.

Recovery and economic growth in Africa called for the total cancellation of official debt or a substantial reduction in its volume, the lowering of interests rates on remaining debt and the promotion of debt conversion to finance ecological and development programmes.

Its relatively good economic health allows it to finance its debt at less than the rate of inflation, while other European states finance theirs at rates that are three points higher than inflation.

Modern finance has succeeded in creating a default dynamic of such stupefying complexity that it defies standard approaches to debt workouts.

The G 8 finance ministers have agreed to cancel 40 billion of debt owed by eighteen of the world s poorest countries.

A vicious circle of public finance deficits, current account gaps, worsening external debt dynamics, and stagnating growth can then set in.

There is a greater need for the countries to try to make debt finance a positive source of financing for development.

The innovative approach advocated by the Philippines of a debt for equity swap to finance MDG projects is worth looking into.