A New Deal for Debt Overhangs?

A New Approach to Eurozone Sovereign Debt

New initiatives for debt relief and increased aid

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

I have a new debt to pay the philistines.

Can we engineer new debt contracts for countries like Argentina?

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 new non concessional debt more than offset the debt relief received, although export earnings have increased since 2001.

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

The new G 8 debt relief proposal is a significant step forward.

Economic reforms, new IMF lending and debt relief have accompanied the devaluation.

All parties concerned with the debt problem should work together to formulate new debt strategies with a view to overcoming the debt crisis in a comprehensive, effective and durable manner.

They will buy the new government debt and leave all spending decisions unaltered.

But there remain little new securitization and bank debt offerings without government backup.

Indeed, these private funds account for about two thirds of all new debt.

The country is creating new debt at a rate of 400 million annually.

Some countries achieved a real exit from a debt crisis, while others continued to face a lingering debt problem or are considering new debt renegotiations (as in the case of Ecuador).

Or it could be a soft default in which Greece unilaterally services its existing debt with new debt rather than paying in cash.

With regard to bilateral debt, debt relief took the form of payment rescheduling, sometimes on concessional terms, sometimes coupled with new loan packages.

Its response was to offer targeted and expedited debt relief often by bringing in new temporary bankruptcy legislation that forced limited debt write downs.

They are more focused on paying down massive debt overhangs built up before the crisis than on assuming new debt and boosting aggregate demand.

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

This led to the formulation of the international debt strategy, an evolving set of international policies that now incorporate debt and debt service reduction, as well as new financial flows and adjustment cooperation.

Following that, the restructured bank can be recapitalized by raising new debt and equity.

Therefore it is right time for a new initiative on Africa apos s debt.

So we could say, well, a new figure comes out ... let's see African debt.

It was the equivalent of a Chapter 11 restructuring of American corporate debt, in which debt is swapped for equity, with bondholders becoming new shareholders.

It is time to rethink the problem and to devise new financial mechanisms to resolve the debt problem that do not lead to debt accumulation.

The amount of debt relief would then be determined on the basis of expected development assistance and the need to avoid a new debt overhang.

The relationship between debt relief and the provision of funds should be appropriate, since debt relief could in no way replace new allocations of funds.

Instead, they focused exclusively on US foreign debt, ignoring household debt (mortgage and consumer debt), public debt, business debt, and financial debt.

At a time when new sovereign debt restructurings are distinct possibilities, such action is crucial.

Some states, like Virginia, had already paid much of their debt, and others saw their debt as having become a financial game for New York speculators.

The five countries in trouble will need to place tens of billions of euros in new debt and roll over even larger amounts of old debt.

Higher inflation would cause the interest rate on new debt to rise in a way that prevents the erosion of the real value of the total debt.

Latin America, on the other hand, has been reducing its external debt to GNP ratio mainly through reduction of debt levels and only slowly undertaking new borrowing.

US states entered their new union with different debt loads and different capacities to service them.

New money should go to good performers, not just to those who are experiencing debt distress.

Investors in the coming years will need to be persuaded to hold mountains of new debt.

Additional debt relief was therefore necessary and, to that end, a new political impetus was required.

Debt sustainability and debt relief

In a highly innovative move, Argentina exchanged old debt for new debt at about 30 cents on the dollar or a little more plus a GDP indexed bond.

Before the Brady Plan, debt servicing obligations were mainly postponed in debt rescheduling agreements under which banks also made quot concerted quot new loans to help pay arrears.

B. External debt and debt relief

Commercial banks, for their part, agree to provide debt and debt service reduction (DDSR), although sometimes individual banks extend new loans instead of reducing the debtor apos s obligations.