Debt service coverage and bond interest

(e) Debt service coverage

Debt service ratio

Lower interest rates on loans are available in capital markets to borrowers who have ample debt service coverage , which is defined as total revenues available for debt service as a percentage of the required debt service.

Article 23. Rate of payment of creditors 96 98 21

Article 23. Rate of payment of creditors

Article 17 19 . Rate of payment of creditors 182 183 40

Although Mexico s traditional debt indicators appeared sustainable, with moderate ratios of debt service, debt stock to exports and interest payments to exports (a ratio similar to the debt service ratio), the ratio of short term debt to reserves amounted to 131 per cent in 1997 (the ratio was much higher in 1996).

In 2004 the ratio of debt servicing to exports was 10.0 per cent (see figure below).

The ratios of debt service to exports and debt stock to GNP also point towards an improved position.

d A low indicator is a reflection that insufficient cash is available to settle debts.

f A low indicator is a positive reflection that obligations are being liquidated.

It is intended to ensure that a creditor, by participating in proceedings in more than one jurisdiction, does not receive a greater proportion of repayment of claims than that received by other creditors of the same class.

Latin American debt indicators generally indicated a sustainable debt position for the region as a whole, with a debt service ratio of 12 per cent, debt stock to exports and to GNP ratios of 103 per cent and 43 per cent respectively, and a short term debt to reserves ratio of 71 per cent.

1 It is generally recognized that a ratio of debt to exports exceeding 200 per cent and a ratio of debt service to exports exceeding 20 per cent would signal serious debt problems.

Interest rates will rise to compensate investors both for having to accept a larger share of government bonds in their portfolio and for an increasing risk that governments will be tempted to inflate away the value of their debts, or even default.

(q) quot Unliquidated obligation quot shall mean an obligation or that portion of an obligation which is not yet disbursed.

e A low indicator is a positive reflection that debts owed to Member States are being settled.

DMFAS pays for itself by making debt servicing procedures more efficient and by checking inconsistencies in the claims of creditor agencies.

Guatemala's debt service as a percentage of its exports of goods and services (indicator 42) is one of the lowest in the region.

Cancellations of prior years' obligations amounted to 17.5 million or 20 per cent of prior years' unliquidated obligations in 2004, compared to 18 million or 23 percent in 2003, and 13.1 million or 17 per cent in 2002.

The increase in 2003 compared to 2002 was due primarily to the significant increase in the supplementary programme budget.

Management continues to pay close attention to the amounts recorded as unliquidated obligations throughout the year.

Management systems renewal project (MSRP)

This integration of information systems is a major step towards the availability of on line real time financial and related management information.

Insolvency law

Implementing partner expenditures

To pay his note.

External debt and debt servicing costs had also risen.

A moratorium would allow the reduction of unemployment, calm the situation and decrease social tension.

(ii) Unliquidated obligations for future years are reported both as deferred charges and as unliquidated obligations

Target ranges for sustainable debt levels have initially been defined by the Bretton Woods institutions as 200 to 250 per cent for the debt to exports ratio expressed in present value terms, and as 20 to 25 per cent for the debt service to exports ratio.

Unliquidated obligations

Unliquidated obligations

External public debt

C. Unliquidated obligations

The debt indicators show what would be expected to be a sustainable debt position.1 The debt service ratio measured 13 per cent, the debt stock to exports ratio 114 per cent, the debt stock to GNP ratio 31 per cent, and short term debt to foreign exchange reserves ratio 53 per cent as noted, however, those figures obscure diverse trends at the country level.

Ample debt service coverage for a United Nations bond could be created by permitting the trustee to set aside a higher than required percentage of assessment payments tendered by Member States to permit the accelerated collection by the bond trustee of the total annual debt service requirement.

The ratio of outstanding debt to exports exhibited an improvement at 205 per cent but still remained above the 200 per cent threshold that is held to indicate the existence of a debt overhang.

Directors' and officers' responsibilities and liabilities in insolvency and pre insolvency cases

(d) Guidelines allowing an insolvency representative in the insolvency of a holding company to steer the actions to be taken by the (insolvent) subsidiary

Contribution payments would generally be made to the insolvency representative administering the insolvent estate for the benefit of the estate as a whole.

Sometimes, debt service payments are rescheduled and perhaps stretched out over a longer period, thus giving the debtor country time to regain its ability to pay. Sometimes, creditors agree to exchange the old bonds for new ones, which have either a lower face value or lower interest payments.

servicing of the company debts.

I must repay the debt.