1. Commercial bank debt

It is interesting to note that private flows have changed, in terms of composition, from debt to equity financing and shifted from bank to non bank sources in recent years.

The typical bank is capitalized with equity, long term debt, short term debt, and deposits.

Under the international debt strategy for addressing commercial bank debt, progress has been very substantial.

Otherwise, bank runs and debt panics will be rampant.

(iii) Measures for the reduction of commercial bank debt

The link between sovereign debt and bank debt has to be broken once and for all.

1. Solution to debt problem Joint programme on External Debt Management with UNCTAD and World Bank

16 World Bank, World Debt Tables, 1993 94, p. 7.

There is more than the debt to the World Bank

In the treatment of the debt of countries in debt crisis, international policy has evolved very considerably, particularly as regards commercial bank debt.

51. The success of the international debt strategy lay mainly in defusing the crisis involving commercial bank debt.

This consideration warrants non debt creating external assistance.

Chancellor Angela Merkel has criticized the United States Federal Reserve and the Bank of England for quantitative easing, which has in practice allowed the central bank to monetize many types of government and non government debt.

Several low income countries had settled their difficulties in servicing their commercial bank debt, generally by buying back their debt at a discount with concessional international resources, but many of them still had difficulty in servicing their debt and would remain dependent, in the medium term, on non debt creating capital flows.

Where realistic debt restructuring scenarios indicate capital shortfalls, across the board conversion of bank debt into equity will be necessary.

In all debt distressed countries, arrears on commercial bank debt have had an adverse impact on badly needed trade financing.

At the very least, it renders non viable all debt restructurings under the standard debt contracts.

38. As in the past, the external debt data used in the preparation of the scale represent debt stock information obtained from World Bank World Debt Tables.

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

Also, it does not formally violate the policy prohibiting World Bank debt relief.

In the case of commercial bank debt, most of the heavily indebted middle income countries had succeeded in restructuring their debt.

Since 15 June 2004, Côte d'Ivoire has accumulated significant arrears on its debt obligations to the World Bank and, on 1 November 2004, it fell into non accrual status.

As regards commercial bank debt, the agreements completed under the Brady plan had brought about a significant reduction in commercial bank debt, and had contributed to improved creditworthiness resulting from domestic economic reforms.

The World Bank receives tapes and diskettes containing external debt statistics (WLDBNK 2) from approximately 20 countries through its Debt Reporting System.

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

The National Bank of the Republic of Belarus monitors banks and non bank credit and financial institutions

China s non financial corporate debt accounts for roughly 62 of total debt 30 40 higher than in other countries.

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

Only the European Central Bank could implement true socialization of national debt in the eurozone.

Socializing bank debt is both unjust and will result in a future misallocation of resources.

The Bank also provides diskettes to over 50 non governmental organizations.

From the early days of the developing country debt crisis, official and private creditors have sought to restructure debt in collective creditor forums the Paris Club for official bilateral creditors and bank advisory committees for bank creditors.

The National Bank defines the permitted combination of banking transactions which non bank credit and financial institutions may perform.

Greater use should be made of the prospects offered by non traditional debt repayment schemes such as debt equity or debt for nature swaps in debtor countries.

According to Central Bank estimates, total external debt at the end of June 2002 was over 6.4 billion, and domestic debt amounted to 1.7 billion.

By March 1993, creditors representing 97 per cent of Brazil apos s outstanding commercial bank debt had decided to participate in its debt rescheduling programme.

Unlike some months ago, now the European Central Bank can intervene and buy troubled countries debt.

18. Multilateral debt was growing in volume and debt servicing was posing more and more problems for IMF, the World Bank and the regional development banks.

Similarly, Guyana will have its debt reduced by more than 8 of GDP. The level of debt relief will be even greater once the World Bank and the African Development Bank finalize their own programs in the months ahead.

World Bank The following non governmental organizations were represented at the Meeting

There is no secondary market for debt owed to official creditors, but a strict assessment of repayment prospects on this debt would in principle be of the same nature as for commercial bank debt.

For low income countries, external debt stood at about US 424 billion, of which US 356 billion were non commercial guaranteed debt.

History offers countless examples of the misallocation of resources that can result from socialization of bank debt.

The World Bank and IMF had acknowledged Pakistan apos s commitment to fulfilling its debt related obligations.