These terms treat the debt owed by lower middle income countries and do not involve any write off of debt or reduction in net present value of debt servicing.

A. Further debt reduction

Debt reduction, either through stock of debt reduction or debt service reduction based on a concessional rescheduling, will continue to be considered only in exceptional cases.

Debt reduction is not fatal.

This provided for 50 per cent reduction of the net present value of the consolidated debt servicing of the poorest highly indebted countries.

(c) The need for debt reduction

Debt reduction should cover a greater proportion of the debt, in certain cases the total debt.

The debt strategy should include, among other things, a drastic reduction of debt and debt servicing.

Net effect of the reduction increase of international NOs

Net effect of the reduction increase of FSL NOs

Debt cancellation did not necessarily lead to net flows.

The net result is a reduction in circulating LDL particles.

First, Greek debt reduction was postponed for too long.

(i) Measures for the reduction of official bilateral debt

(ii) Measures for the reduction of official multilateral debt

(iii) Measures for the reduction of commercial bank debt

Such steps include substantial debt reduction and the streamlining of debt relief procedures and requirements.

Overall, the division will have a net reduction of two posts.

6. The Paris Club had also accepted the principle of debt and debt service reduction for low income countries, although that reduction was still insufficient.

In that study, the net present value of debt servicing was examined under different debt restructuring options.

Japan is a net creditor and largely finances its debt domestically.

Initially, to facilitate debt reduction, bondholders would face another haircut.

Secondly, debt cancellation and reduction should be extended and intensified.

Debt service reduction, normally in the form of interest reduction bonds, has been offered in three ways.

The second performance report shows a net reduction in requirements, by 21,962,900, to the amount of 308,305,200 gross ( 276,474,100 net).

For some, reducing debt burdens to sustainable levels looks increasingly difficult within existing official debt reduction schemes.

More debt relief should be provided, including cancellation of debts, debt reduction and, more generally, innovative schemes.

Figure 2 shows the breakdown between new (net) transfers and debt forgiveness.

In those countries, drastic action was needed for further debt reduction.

52. Operations within the IDA Debt Reduction Facility have increased sharply.

Others felt that even more substantial debt reduction should be granted.

Dividing debtor countries into sub categories would hamper debt reduction initiatives.

Fifth, debt burdens that cannot be eased by growth, savings, or inflation must be rendered sustainable through orderly debt restructuring, debt reduction, and conversion of debt into equity.

21. Stresses that debt relief should contribute to development objectives, including poverty reduction, and in this regard urges countries to direct those resources freed through debt relief, in particular through debt cancellation and reduction, towards these objectives

According to this definition net transfer is disbursements minus total debt service payments.

For countries with unsustainable debt burdens, timely and realistic debt reduction agreements are also essential quot (emphasis added). 17

Reforming countries in debt crisis require an adequate and permanent reduction in the stock of debt . (Ibid., para. 27)

and for a substantial reduction of all types of debt, including multilateral debt, for all categories of developing countries.

So, as austerity undermines growth, debt reduction will be marginal at best.

62. Productive investment should be the cornerstone to any debt reduction strategy.

Generally speaking, banks choose from menus that have employed three main categories of options (not all are necessarily available in each case) debt reduction, debt service reduction and new loans.

quot 2. A reduction in length of net from 50 km to 42.5 km.

57. A new approach in official bilateral debt calls for bolder measures in two key areas, debt reduction and the institutional framework for debt relief.

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.

In 2007, the mortgage and consumer debt to GDP ratio was more than 90 , compared to 24 for net foreign debt.