The problem with short term debt is less severe for the non financial private sector as the bulk of such obligations were contracted by financial institutions.

Debt Management and Financial Analysis System

Debt and financial management (legal aspects)

Legal aspects of debt and financial management

debt, economic and financial management ..... 183 199 39

C. Financial issues capital flows, aid and debt

Non Financial Disclosures

Aggregate debt (government, household, non financial corporations, and financial institutions) is slightly more than 315 of GDP, similar to Switzerland (313 ), France (323 ), the United States (296 ), and even Germany (285 ), all 2009 numbers. But household debt is very low, at less than 50 of GDP.

49. The second prong of the strategy was to deny the non financial private sector any public sector guarantee or financial support, and to thereby force it to negotiate debt restructuring directly with creditors.

(j) Non consolidated financial statements

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

Group of 77 (core groups on debt and international financial systems)

(d) To acknowledge the problems of the debt sustainability of some low income countries that are not heavily indebted, in particular those facing exceptional circumstances, and in this regard to note the tailored treatment for non HIPC developing debtor countries adopted by the Paris Club to ensure that debt restructuring provides non HIPC debtor countries with a debt treatment that reflects their financial needs and the objective of ensuring long lasting debt sustainability

Private non guaranteed debt represented the fastest growing segment of external debt, rising by 20 per cent or 21 billion.

It may also request indemnification for financial and non financial loss.

In the area of debt management, the Bank supports the Debt Management and Financial Analysis System (DMFAS) through a joint programme.

The objective is to tailor debt restructuring to the financial needs of the country concerned and to ensure debt sustainability and an exit from Paris Club debt reschedulings.

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.

Indeed, nearly a third of our financial resources are devoted to debt servicing.

For many heavily indebted non HIPC and middle income countries, debt sustainability will require significantly more debt reduction than has yet been proposed.

The persistence of debt crises underscores the need to reform the international financial system.

Debt cancellation would enable us to devote all of our financial resources to development.

In view of their debt servicing difficulties, African countries must rely on non debt creating flows, especially ODA and (private) foreign direct investment (FDI).

It has discussed disclosure relating to various categories of financial and non financial information.

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.

56. Bolivia acknowledged the efforts of international financial institutions to alleviate the debt burden of developing countries through the Heavily Indebted Poor Countries Debt Initiative.

The UNCTAD Debt Management and Financial Analysis System now covers over 40 countries, representing over 25 per cent of the outstanding debt of developing countries.

Moreover, China now holds a massive volume of overseas assets and liabilities its non financial corporations have borrowed as much as 1 trillion abroad. As devaluation causes businesses debt burdens to grow in renminbi terms, the risk of non performing loans and bankruptcies rises.

For many heavily indebted non HIPC and middle income countries, debt sustainability will require significantly more debt reduction or restructuring than has yet been proposed.

Noting that the ongoing international financial crisis is adding further burdens to the external debt problems of many developing countries and that a number of developing countries have continued to meet their international debt and debt service obligations in a timely fashion, despite serious external and domestic financial constraints,

The most typical example is the case of debt management by the international financial institutions.

68. The conventional model of financial reporting minimizes the role given to non financial data.

Such tactics, in which banks are nudged, not coerced, into investing in government debt, constitute soft financial repression. But governments can go beyond such methods, demanding that financial institutions maintain or increase their holdings of government debt, as the UK s Financial Service Authority did in 2009.

Fifth, debt burdens that cannot be eased by growth, savings, or inflation must be rendered sustainable through orderly debt restructuring, debt reduction, and conversion of debt into equity. This needs to be carried out for insolvent governments, households, and financial institutions alike.

52. In many respects, the case of the Republic of Korea was similar to that of Thailand the private sector debt was for the major part contracted by the financial system. However, that resulted from the restrictions on borrowing abroad by the non financial private sector.

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.

Emphasizes the importance of achieving reductions in the outstanding debt of the Least Developed Countries to sustainable levels through debt relief measures, in order to help relieve their financial burdens, enhance their credit worthiness and improve their external financial prospects.

African countries must restructure their domestic financial sectors and develop capital markets and non bank financial institutions.

COLOGNE A little discussed but crucial factor in the debate over wealth transfers from Europe s more economically sound north to its troubled south is the relationship between public debt, GDP, and private wealth (households financial and non financial assets, minus their financial liabilities) in particular, the ratio of private wealth to GDP in the eurozone countries.

Financial flows for development, including a durable solution for the external debt problems of the developing countries

Training programme in legal aspects of debt and financial management (Central Asian republics and sub Saharan Africa)

(d) Financial reforms to encourage employment creation should cover banking, the non bank financial sector, monetary policy, financial openness and the institutional environment.

In that regard, greater attention should be paid to debt contracted by developing countries with multilateral financial institutions. Furthermore, the guidelines set for negotiating debt restructuring should be respected.

169. Concern was expressed about the non inclusion of the issue of external debt in programme 28.

16 See Indonesia on track for debt rescheduling , Financial Times, 23 July 1998 and Donors agree 7.9 billion more for Indonesia , Financial Times, 31 July 1998.