Debt Management and Financial Analysis System

Debt and financial management (legal aspects)

Other debt renegotiations

Legal aspects of debt and financial management

Debt for equity swaps Other debt for development swaps

Additional debt cancellation should be achieved without reducing the resources available to other developing countries, and without jeopardizing the long term financial viability of international financial institutions.

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C. Financial issues capital flows, aid and debt

Sovereign debt has been a major feature of the international financial system for centuries. Kings borrowed, often internationally, to finance wars and other expenditures.

Liberia apos s external debt to international financial institutions and other external creditors, inherited from previous Governments, imposes a huge burden on my Government.

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

Financial firms in the United States pay about 34 of their profits in taxes, and, while they can deduct interest payments to creditors from taxable income, equity is not taxed as favorably. Most countries have similar tax preferences for debt over equity, thereby encouraging financial and other corporations to use more debt, as financial analysts have long known.

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.

Other financial assistance

The Asian and other financial crises brought to the fore some new dimensions to the debt problems of developing countries, particularly for the middle income, highly indebted countries.

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.

(2)other financial liabilities.

The Other Financial Crisis

Other financial police units

Financial and other assistance

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.

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.

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.

Noting the importance of re establishing financial viability for those developing countries facing unsustainable debt burdens, we welcome initiatives that have been undertaken to reduce outstanding indebtedness and invite further national and international measures in that regard, including, as appropriate, debt cancellation and other arrangements.

Unlike other Latin American, Caribbean and Central American countries, Guatemala's external debt situation is stable, with normal debt servicing loads and external debt indicators in the moderate range.

The other spouse is jointly liable for any debt so contracted.

CHICAGO It is universally recognized that a key factor underlying the 2007 2008 financial crisis was the diffusion of collateralized debt obligations (CDOs), the infamous special purpose vehicles that transformed lower rated debt into highly rated debt. As these structures lost popularity on Wall Street, however, they gained popularity on the other side of the Atlantic.

We welcome the initiative of the finance ministers of the Group of Eight to cancel the debt of 18 heavily indebted poor countries. We hope to see further debt relief for other heavily indebted countries so that financial resources can be released to meet urgent development needs.

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.

That commitment had spoken not only of debt reduction or rescheduling, but also of quot cancellation or other debt relief measures quot .

25. As of July 1998, six other countries had renegotiated their debt.

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)

E. Bonds and other financial security

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.

The question of debt sustainability analysis is also key to the resolution of the debt crisis of other low and middle income countries.

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.