Debt sustainability and debt relief

Measuring debt sustainability

Oral statements in plenary on CTT and debt sustainability.

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

This, too, complicates the public debt dynamics and impedes the restoration of public debt sustainability.

Many speakers stated that debt sustainability analysis was an important element in improving debt management.

This would greatly improve the sustainability of these countries debt.

Debt sustainability is also affected by vulnerability to external shocks.

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.

Debt sustainability should be redefined as the level of debt consistent with achieving the Millennium Development Goals without creating new debt obligations.

To date, the macroeconomic approach has been dominant in debt sustainability analysis.

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

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.

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

The first was the absence of agreement on the concept of debt sustainability.

Additional financing was also needed to enable developing countries to achieve debt sustainability.

There is a need for alternative approaches to debt sustainability, and increasing coherence.

Norway was a strong supporter of debt relief and the HIPC Initiative, but more was needed to achieve debt sustainability.

The issue of debt work out mechanisms was also an important part of debt sustainability considerations and merited further discussion.

Other peripheral countries already have Greek style problems of debt sustainability and eroded competitiveness.

Europe could re engineer the eurozone to enable debt sustainability and high economic growth.

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

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

For many heavily indebted non HIPC and middle income countries, debt sustainability will require significantly more debt reduction than has yet been proposed.

Clearly, current debt relief initiatives enable our countries to use precious resources for financing development, but they do not ensure our debt sustainability.

Debt sustainability was essential the capacity of a country to make the necessary investments to satisfy social needs, without increasing its debt ratio.

Greece is also the canary in the coal mine for the euro zone, where all the PIIGS economies (Portugal, Italy, Ireland, Greece, and Spain) suffer from the twin problems of public debt sustainability and external debt sustainability.

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.

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.

Ministers and other participants expressed a range of views concerning an improved definition of debt sustainability.

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

Debt sustainability indicators for Haiti are mixed. It is estimated that the debt export ratio in net present value terms is high (187 per cent), suggesting that Haiti's debt is unsustainable.

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.

Furthermore, it was emphasized that the issue of debt sustainability must continue to receive special attention, because it goes beyond the policies of debt remission.

Debt relief and debt sustainability were also issues that needed to be addressed as soon as possible in order to achieve the Millennium Development Goals.

In particular, they should have paid greater attention to the sustainability of US mortgage and consumer debt.

Yet, in addition to being horribly painful, domestic deflation threatens the sustainability of public and private debt.

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

The long term sustainability of debt also depends on the growth and export prospects of debtor countries.

There were different views regarding approaches to defining debt sustainability in the context of key national objectives.

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.

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.