financial indebtedness and procedures to be followed with a view to resolving the issues relating thereto

34. At the 159th meeting, the Committee resumed its consideration of problems relating to financial indebtedness.

30. At the 164th meeting, the Committee resumed its consideration of problems relating to financial indebtedness.

Figure II. Aggregate net long term financial transfers

This reflects the fact that the multilateral financial institutions are no longer providing net financial resources to developing countries, but are currently net recipients of financial resources.

II. TRENDS IN THE NET FINANCIAL TRANSFER TO DEVELOPING

11 The net transfer on financial resources is defined as the difference between net capital inflows and net international payments to capital.

The cost is also the increase in net federal government debt held by the private sector the most accurate measure of true government indebtedness.

The increase in net financial outflows from that group of countries and the fact that the multilateral financial institutions had become net financial transfer recipients were a cause of grave concern.

II. TRENDS IN THE NET FINANCIAL TRANSFER TO DEVELOPING COUNTRIES

Yet the financial crisis and the ensuing recession go only so far towards explaining these high levels of indebtedness.

A number of proposals have been discussed in the international financial community to provide a more orderly resolution of financial crises caused by excessive external indebtedness.

Table 3 Selected multilateral financial institutions net transfers of resources, 1990 2004a

Perversely, some developing countries have now become net exporters of financial resources.

Recovery of indebtedness to the Fund

A. Indebtedness indicators 6 10 4

This means that the multilateral financial institutions are no longer providing net financial resources to developing countries, but are currently net recipients of financial resources that are needed by these countries to achieve the Millennium Development Goals.3

But excessive indebtedness and losses on the risky investments that had been made triggered the global financial crisis and led to the failure, or near failure, of many major financial institutions.

The net financial transfer of a country is thus the financial counterpart to the balance of trade in goods and services.

It was this system of financial intermediation whose near collapse in 2008 seemed for many to justify the ancient warnings of the perils of indebtedness.

32. The observer for Switzerland said that the problem of financial indebtedness of diplomatic personnel was increasing and should be dealt with with great vigour.

(a) Settling all indebtedness to the United Nations

Multilateral financial institutions had become net recipients of financial resources from developing countries, as loan repayments had started to outstrip loan disbursements.

Several discussants noted the continued net transfer of financial resources from developing to developed countries.

Despite economic difficulties, some African countries continued to experience positive net inflows of financial resources.

The current spotlight may be on Europe s financial woes, but the bigger picture for China is that America s chronic deficits and indebtedness epitomize its relative decline.

22. ODF has increased (in terms of current prices) faster than all other net financial flows.

In 1993, nearly half the net financial transfer went into reserves (see table 1 below). English

In the same period, the accumulated net transfer on a financial basis was around 3.5 billion.

11. The cost estimate for the 12 month period amounting to 134,814,000 gross ( 130,450,000 net) reflects a decrease of 7,470,000 gross ( 7,244,000 net) from the appropriation of 142,284,000 gross ( 137,694,000 net) for the current financial period.

Since 1997, net outward transfer of financial resources from poor countries to rich countries has steadily increased, while net official flows to all developing countries remained negative.

However, net transfer of capital was a relevant measure of the extent to which developing countries and transition economies as a whole were net financial flow recipients.

Expenditures are estimated at 2,388,400 gross ( 2,276,300 net) resulting in an unencumbered balance of appropriations amounting to 1,142,200 (gross and net) for the period. III. FINANCIAL ADMINISTRATION

It discussed, among other matters, issues relating to the organization of the work of the Committee, the problem of financial indebtedness of certain permanent missions to the United Nations and the findings of the Working Group on Indebtedness concerning dental and health insurance proposals for the diplomatic community.

13. Not all the increased net financial transfer to developing countries went to finance current account deficits.

In Asia, more or less half of the net financial transfer of 48 billion covers such losses.

The overall outcome of the various financial flows saw a seventh consecutive year of increasing net transfers of financial resources from developing to developed countries.

United Nations and their personnel, in particular the problem of claims of financial indebtedness and procedures to be followed with a view to resolving the issues relating thereto

These rules must allow for a gradual reduction in indebtedness.

Indebtedness must also be properly incorporated into the scale methodology.

We also know that excessive indebtedness curbs growth and development.

Over the last 12 months, the indebtedness problem had grown.

Excruciating external indebtedness remains a major impediment to our development.

Net service Net payments of Balance on current Net movement

18. The aggregate net financial resources flows suggest different patterns to Africa and developing countries, especially since 1990.