We reduced them through debt write off and debt relief, as well as through the method of reducing our own debts.

Debt relief

Debt sustainability and debt relief

These costs might result, for example, from debt relief for countries which may enter the HIPC process or for protracted arrears.

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

The False Promise of Debt Relief

Furthermore, the Committee encourages the State party to continue its efforts to reduce its external debt and to ensure that the social sector benefits from such 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.

Options for lower debt burdens on Governments of heavily indebted developing countries include debt cancellation and debt swaps for sustainable development.

Europe s Inevitable Haircut

Cutting the burden of Africa's debt

Need for broader external debt relief

Another important step forward was the finalization of the debt relief plan for the Heavily Indebted Poor Countries (HIPC).

The leaders welcome the decision by Iraq's creditor States to reduce Iraq's indebtedness to them by 80 , and they urge Arab creditor States to act without delay to forgive or reduce Iraq's indebtedness to them.

Emphasizing the important role that private sector creditors play in debt relief and debt sustainability,

Why Ukraine Deserves a Haircut

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

a An option was included to convert US 30 year bond into a US 12 year bond with debt reduction.

Significant steps have also been taken to reduce the burden of debt on the most heavily indebted poor countries.

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

This raises the question of the adequate level of debt relief which would truly allow debtor countries to grow out of their debt problems.

To implement the enhanced programme of debt relief for the heavily indebted poor countries without further delay and to agree to cancel all official bilateral debts of those countries in return for their making demonstrable commitments to poverty reduction and

Accordingly, the Panel recommends a 100 per cent debt cancellation for all low income countries, including those not eligible for debt relief under the HIPC initiative, and significant relief for middle income countries.

In such a situation, the only option available for the Government was to seek debt restructuring to alleviate the debt burden or to have short term cash flow relief.

For most HIPC countries, this will require exclusively grant based finance and 100 per cent debt cancellation, while for many heavily indebted non HIPC and middle income countries, it will require significantly more debt reduction than has yet been on offer.

The conclusion is clear Greece s debt service burden is too large, and it must be reduced. This can be accomplished in two ways sharply cutting the interest rate paid by Greece, or reducing the face value of the debt.

Debt relief should be more extensive and generous.

Noting with concern the continuing debt and debt servicing problems of heavily indebted developing countries as constituting an element that adversely affects their development efforts and economic growth, and stressing the importance of alleviating once and for all, where applicable, their onerous debt and debt service burden with the aim of attaining a sustainable level of debt and debt service,

Total debt relief accorded to the 27 countries that have reached either the decision point or the completion point, together with other debt relief measures, represents a two thirds reduction in these countries' overall debt stock.

Poverty increased, the currency suffered repeated devaluations, foreign and domestic debt registered an increase and the growth rate of the economy fell.

Provide debt relief to all developing countries, including debt cancellation to HIPC, as well as extending the HIPC initiative, and resolving the debt problems of LDCs, low and middle income developing countries that are not eligible to debt relief under the HIPC and to explicitly link debt relief to the national development plans and efforts aimed at achieving the internationally agreed development goals including the MDGs, as well as other development goals.

We would like to express our gratitude to those donor countries which have provided debt and debt servicing relief to the affected countries.

Multilateral lenders have long understood the importance of debt relief to poverty reduction. Indeed, the joint IMF World Bank Heavily Indebted Poor Countries (HIPC) Initiative was launched in 1996 to coordinate efforts by multilateral organizations and governments to reduce poor countries debt burdens to sustainable levels.

(e) To reduce the unsustainable debt burden of developing countries through such actions as debt relief and, as appropriate, debt cancellation and other innovative mechanisms geared to comprehensively addressing the debt problems of developing countries, in particular the poorest and most heavily indebted ones

The middle income countries should receive substantial debt relief.

In April 2004, Ethiopia reached the completion point under the enhanced HIPC Initiative, and in May 2004 it benefited from a 90 per cent reduction in the net present value of its debt stock, thus reducing the country's debt owed to Paris Club creditors from US 1,087 million to US 153 million in net present value terms.

Debt relief for the countries of the region remains a major focus of our assistance to Africa, including through the Heavily Indebted Poor Countries (HIPC) Debt Initiative.

7. Welcomes initiatives that have been undertaken to reduce outstanding indebtedness

The federal debt has declined by over 61 billion over the last eight years.

A third crucial issue was debt relief for poor countries.

Moreover, because financial institutions assets were bought mainly with borrowed money, the shortage of credit is exacerbated by their need to deleverage. Since raising capital is difficult and costly, they deleverage by lending less.

There have been reductions in the ratios of debt to gross national income and debt service to export earnings since 2000, due to strenuous efforts at repayment by developing countries and some debt relief.

Significant steps had also been taken to reduce the debt burden of the most heavily indebted poor countries.

Debt relief provided to countries with debt arrears merely amounts to an accounting exercise.16 ODA in the form of non cash assistance and debt relief17 does not bring additional budget support or foreign exchange transfer.

So, if internal devaluation is to work, the value of debts, where they already represent a heavy burden, must be reduced. Government debt must be restructured.