In spite of the increase in total debt, debt burden indicators, which largely reflect debt servicing capacity, have improved at the aggregate level (see figure 1).

Debt to GDP ratios tend to increase for countries that are in economic trouble.

Budget deficits automatically increase government debt, requiring higher future taxes to pay the interest on that debt.

Sri Lanka apos s debt repayment obligations had continued to increase.

The benefits of debt relief do not increase linearly with the amount of debt servicing reduced they materialize when debt reduction exceeds a critical mass.

An international debt strategy should incorporate measures to reduce debt and reschedule debt servicing and increase financial flows to low income and severely indebted countries.

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.

In contrast, countries in Europe and Central Asia experienced a 7.8 per cent increase in their total debt stock, as compared with a 20.7 per cent increase in 2003.

Moreover, the relative increase in debt (leverage) in the financial system was similar on both sides of the Atlantic.

Debt sustainability needs to be redefined to enable the least developed countries to achieve the goals contained in the Brussels Programme of Action without an increase in debt ratio.

Debt relief had the potential to substantially increase investment in sectors that were crucial for achieving development goals.

Debt service payments were expected to increase slightly each year, up to approximately US 5.5 million in 1997.

In Brazil, the consequences of those crises were an inflationary spiral and an increase in foreign debt to stratospheric levels.

And reducing debt ratios by saving more leads to the paradox of thrift too fast an increase in savings deepens the recession and makes debt ratios even worse.

Only the United States can indefinitely print its own currency and increase its debt.

Corroborating statistical evidence shows that high deficits and debt increase long run interest rates.

After all, the consequences of failing to increase the debt ceiling would be catastrophic.

In short, Latin American countries have used their additional export revenues to pay down debt and increase social spending.

The increase in aid, however, must not be limited to debt forgiveness, technical assistance and emergency and humanitarian relief.

Fiscal adjustment was also necessary to limit external vulnerability and the increase of external debt in relation to GDP.

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

In order to avoid debt servicing difficulties and to achieve the Millennium Development Goals by 2015 without an increase in debt ratios, exclusively grant based finance for most HIPCs is called for.

The most direct adverse impact of deflation is to increase the real value of debt.

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

36. We stress that in assessing debt sustainability criteria, consideration be given to allowing a country to achieve its national development goals, including the MDGs in 2015, without an increase in its debt ratios.

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.

An increase in fiscal deficits and public debt places negative pressure on financial systems and growth prospects, eroding country creditworthiness.

The public losses are massive in comparison roughly 6 trillion, if we limit ourselves just to the increase in federal government debt.

Where appropriate, we favour a reduction in the stock of debt and an increase in concessionality for those countries facing special difficulties.

But that simply shifts leverage to the public sector, with any reduction in the ratio of private debt to GDP more than matched by an increase in the public debt ratio witness the Irish and Spanish governments high and rising debt burdens.

In this regard, the task force deems it necessary to define debt sustainability within a State context with a view to attaining a level of debt that allows countries to achieve the Goals and avoid an increase in debt ratios by 2015.

We welcome the increase in debt relief, including debt cancellation, for many of the most highly indebted poor countries, as well as the renewed focus on Africa and on HIV AIDS.

Some have noted that the proposed mechanism will increase the debt burden of the poorest countries.

The budget cost increases every year, as more of the debt rolls over and that does not include agency debt and the large increase in the current account deficit to pay China, Japan, and other foreign holders of US debt.

That is because an increase in the inflation rate causes interest rates on new debt to rise by an equal amount.

The total external debt of developing countries had continued to increase in 2003 by approximately 95 billion, or 4 per cent.

Unfortunately, that had been counterbalanced by an increase of approximately US 3 billion (26.6 per cent) in total long term debt in 2004.

But, after interest rates are liberalized, the public sector s debt GDP ratio is expected to increase substantially.

This distinction between foreign and domestic debt is particularly important in the context of the euro crisis, because eurozone countries cannot devalue to increase exports if this is required to service foreign debt.

In fact, there is a gradual and smooth decline in growth rates as debt GDP ratios increase 80 looks only trivially better than 100 .

In addition to favouring an increase in aid, Slovakia also supports further reform of trade relations as well as debt relief for poor countries.

It had been estimated that every percentage point increase in debt service in low income countries reduced public investment by about 0.2 per cent.

27. Invites the international community, including the United Nations system, to continue efforts to increase financial support in respect of capacity building activities for developing countries in the area of debt management and debt sustainability, and encourages countries to create transparent and accountable debt management systems

One notable exception is the increase in total long term debt servicing in sub Saharan Africa by an estimated 3 billion (26.6 per cent) in 2004.