Enterprises in industries with excess capacity have a larger pressure of debt repayment. De capacity and de leveraging today means to promote the gradual removing of debt risks, said Xu Gao.

Strengthening debt management capacity should be an integral part of this strategy.33

The debt burden adjustment should be retained as an element of the scale methodology because external debt had a substantial impact on Member States' capacity to pay.

The capacity of developing countries to manage the maturity structure and currency composition of debt needs further improvement.

Saddled with debt, reparations and oil capacity constraints, and with the security situation highly uncertain, Iraq has yet to achieve self sustaining economic growth despite the reduction in Paris Club debt.

Limited capacity for debt socialization reflects the EU Treaty s no bailout clause, which bars outright mutualization at the eurozone level of (national) public debt. Moreover, the lending capacity of the new rescue fund, the European Stability Mechanism, is capped at 700 billion ( 905.6 billion), which represents only a fraction of the total public debt of the countries potentially needing financial assistance.

The debt burden adjustment was an integral part of the scale methodology, for external debt not only affected a country's capacity to pay but also placed a significant burden on its economy.

Efforts should be made to strengthen the capacity of developing countries to manage their debt, because growth, human development and the achievement of the Millennium Development Goals depended on maintaining sustainable debt levels.

27. Invites the international community, including the United Nations system, to continue efforts to increase financial support in respect of capacity building activities for developing countries in the area of debt management and debt sustainability, and encourages countries to create transparent and accountable debt management systems

The UNITAR training and capacity building programme in the legal aspects of debt and financial management continues to offer a broad menu of training and capacity building services intended for government officials, debt managers and central bankers from sub Saharan Africa, the Central Asian republics and Azerbaijan, as well as from selected countries in other regions.

Given that balance sheet accounting is conducted according to a curious mix of nominal and market values, it can be opaque and easy to manipulate. If prices and thus average debt service capacity fall, the real burden of the debt increases.

The cost of fully covering IMF debt stock relief, without undermining the Fund's financing capacity, should be met by the use of existing IMF resources.

To that end, President Hu Jintao had announced at the recent summit new measures in five areas finance, debt, trade, capacity building and public health.

However, poor countries could not tackle poverty alone, but required increased aid, debt relief, capacity building support and an equitable multilateral trading system to spur growth.

Several speakers called for donor countries to come to the aid of other States with limited capacity and resources, including through the cancellation of foreign debt.

Greece s nominal debt stock will matter only once the country re enters the debt markets and becomes subject to market, not concessional, borrowing terms. In the meantime, Greece must implement the structural reforms needed to restore the country s long term growth prospects and thus to strengthen its capacity to repay its creditors without a large nominal debt reduction.

But this fear is unfounded, because it is based on a misunderstanding. What matters for debt service capacity is the debtors' income, not the general price level.

At their eleventh meeting (Maputo, March 2005), the HIPC ministers called for help in building their capacity to analyse debt sustainability and create a framework for action.

A long term alternative requires some capacity to write down debt where it has reached excessive levels. But it is also necessary to establish an iron clad guarantee of some part of the outstanding debt, in order to remove fear of a complete write down.

Indeed, JPM runs one of the two major private operations for settling major trades of government debt. If a shadow falling over JPM from its trading desk had extended to its capacity to settle government debt properly, the economic fallout could have been severe.

First, the capacity for fiscal intervention at least among developed economies has been underutilized. As former United States Deputy Secretary of the Treasury Frank Newman argued in a recent book, Freedom from National Debt, a country s capacity for fiscal intervention is better assessed by examining its aggregate balance sheet than by the traditional method of comparing its debt (a liability) to its GDP (a flow).

Debt sustainability and debt relief

This strategy s success presupposes that, in the interim, economic growth will strengthen the capacity to repay debt down the line. The debt ratios for both Ireland and Portugal are expected to peak at about 120 of GDP in 2013, after which they are projected to fall.

29. Requests the Secretary General to submit to the General Assembly at its sixty third session a report on the implementation of the present resolution and to include in that report a comprehensive and substantive analysis of the external debt situation and debt servicing problems of developing countries and a review of debt management capacity building efforts, particularly those of the United Nations system

Politics aside, property bubbles leave in their wake a legacy of debt and excess capacity in real estate that is not easily rectified especially when politically connected banks resist restructuring mortgages.

Ethiopia had significantly improved its capacity to mobilize domestic financial resources, and welcomed the recent debt cancellation for heavily indebted poor countries and the setting of timetables to reach ODA targets.

Most economists failed to foresee the economic dynamics that actually led to the crisis, because they failed to pay enough attention to the rapid increase in US total debt. Instead, they focused exclusively on US foreign debt, ignoring household debt (mortgage and consumer debt), public debt, business debt, and financial debt.

Donors as well as recipients must ensure consistency between financing and absorptive capacity. They must also ensure that additional official financing and debt relief will not distort incentives or create moral hazard.

(d) Welcome the initiative of several countries on the moratorium of payments of the external debt of the affected countries to augment their national capacity to carry out the rehabilitation and reconstruction efforts

The Chairperson, speaking in her capacity as an expert, asked whether funds freed up by debt cancellation initiatives for least developed countries had been used to improve the education of women and girls.

Debt

Debt

26. Invites the United Nations Conference on Trade and Development, the International Monetary Fund and the World Bank, in cooperation with the regional commissions, development banks and other relevant multilateral financial institutions and stakeholders, to continue cooperation in respect of capacity building activities in developing countries in the area of debt management and debt sustainability

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

Economic development is a convoluted process, full of challenges and risks, successes and failures, external shocks and internal volatility. And adverse effects such as a rising debt to GDP ratio and excess capacity are inevitable.

To meet those goals, LDCs must remain committed to stressing good governance, sound economic policies and capacity building. The international community must support the LDCs by increasing official development assistance, promoting trade and relieving debt.

Have the government borrow and spend, thereby pulling people out of unemployment and pushing up capacity utilization to normal levels. There are drawbacks the subsequent deadweight loss of financing all the extra government debt that has been incurred, and the fear that too rapid a run up in debt may discourage private investors from building physical assets, which form the tax base for the future governments that will have to amortize the extra debt.

To address the debt burden problem, many African countries at first resorted to repeated debt rescheduling which focused on debt service flows, resulting in steadily increasing debt stocks and related service payments.

External debt

Debt relief

External debt

In the long run, America s growth pattern must undergo a structural shift from reliance on debt and consumption one based on Americans vaunted capacity for creativity and innovation. Only then will America improve its competitiveness enough to allow the government to reduce both private and public debt to sustainable levels while maintaining a respectable growth rate.

Debt relief, debt swaps or debt cancellation could offer important means for mobilizing resources for accelerating progress towards the water and sanitation goals.

They also have to adopt appropriate measures to fully integrate small and vulnerable economies into the multilateral trading system, cancel debt, transfer technology, render financial and technical assistance and provide capacity building programmes for developing countries.

Development should be placed at the core of the Doha negotiations, including in SDT, commodity issues, technical assistance, capacity building and technology transfer, the special situation of LDCs and small economies, and trade, debt and finance.