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.

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

Undoubtedly, debt reduction and increased aid have a role to play in this process.

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

Noted the request of Iraq for the cancellation or reduction of their sovereign debt.

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.

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.

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.

External debt posed a pressing problem and restricted the Government's ability to implement poverty reduction programmes.

Moreover, a debt reduction in the form of further interest rate reductions and maturity extensions on foreign government held debt would not hurt financial markets. But debt held by the European Central Bank and the IMF could pose a problem.

In line with the growing consensus on the need for significant debt reduction for African countries, as evidenced in the above mentioned reports and the widespread support given to the proposals of the United Kingdom Government, the international community should endorse, in the context of the Millennium Development Goals, a comprehensive debt reduction to benefit all heavily indebted countries in sub Saharan Africa and substantial debt relief for middle income countries.

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.

The most reasonable comparison is with Latin American countries during their debt crises in the 1980 s and 1990 s. Despite significantly lower debt GDP ratios and continuous debt restructuring, they eventually needed the large debt reduction that came with the issuance of Brady bonds to achieve some breathing room.

17. Recognizes the difficulties of highly indebted middle income developing countries and other highly indebted middle income countries in meeting their external debt and debt servicing obligations, and notes the serious situation in some of them in the context, inter alia, of significant liquidity constraints, which may require debt treatment, including, as appropriate, debt reduction measures

Since 1999, the poverty reduction strategy papers have become the overall framework for lending, debt relief and development cooperation in low income countries.

Urges that the approach in the debt settlement should cover all types of debt, including multilateral debt, and all indebted developing countries, and incorporate measures aimed at a once and for all reduction arrangement to reduce their debt burden to a scale that would allow them to resume their economic growth and development.

The aim of Italian Eurosceptic government was that the budget deficit was equivalent to 2.4 of gross domestic product (GDP) in the next three years, suggesting that there was no debt reduction despite deficit reduction requirements.

The appropriate amount of debt reduction should be measured against the explicit development objectives defined by the NEPAD process.

The task force agreed that poverty reduction and promotion and protection of human rights should be key considerations in finding solutions for debt sustainability.

The countries of the North must fulfil their commitments in matters of trade, debt reduction and enhancing the quality of aid and good practices.

This debt reduction, coupled with Canada's strong economic growth, has resulted in a significant decline in the federal debt to GDP (Gross Domestic Product) ratio, from its peak of 68.4 percent in 1995 1996 to an expected 38.8 percent in 2004 2005.

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

Criteria for debt relief should be focused on the effective utilization of the resources released for poverty reduction and growth.

Improve individual countries domestic policy mix in a manner that targets debt sustainability through both growth promotion and deficit reduction, especially in the most vulnerable peripheral economies

The successful operations performed by our Government in the management of its foreign debt have led to its restructuring and effective reduction in the past 10 years.

Reduction of debt service burdens can release domestic resources that can be allocated to slum upgrading or other urban developing activities.

In these circumstances, it is not surprising that financial markets have returned to extreme volatility. The expenditure cuts mandated by the outcome of the debt ceiling debate will reduce economic activity, thereby undermining growth and making debt reduction even more difficult.

Acknowledged that developing country efforts to achieve and maintain debt sustainability should be supported by international assistance in the area of debt management and, where appropriate, by consideration of the provision of concessional finance and modification, including reduction of aid conditionalities

Debt reduction and an increase in ODA will allow beneficiary countries to commit more resources for the promotion of development and the fight against hunger and poverty.

This week, Greece defaulted on its payments to the IMF, rightly choosing pensions over debt service. The country s creditors should now negotiate a consensual debt reduction through some combination of lower (and fixed) interest rates, reduced face value of debt, and very long maturities.

A reduction of domestic public debt could also help to boost growth by freeing resources for the productive sectors of the economy.

Plunging debt service is largely an outgrowth of the Fed s unprecedented zero interest rate policy. As long as the stock of debt remains excessive, consumers will dismiss the reduction in interest expenses as nothing more than a temporary subsidy from the Fed.

But hints of new fiscal imprudence or of backsliding on long term debt consolidation and reduction can drive up borrowing costs dramatically. In these circumstances, the additional costs of debt service easily outweigh any gains that might come from some measure of fiscal relaxation.

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.

More significant, over the last year, the public debt GDP ratio rose by seven percentage points in Italy, 11 in Ireland, and 15 in Portugal and Spain. If the sine qua non of recovery via austerity is the stabilization and reduction of debt, the cynics case appears to have been made.

There is a real need for significant debt reduction or restructuring, not only for the least developed countries but also for middle income developing countries.

As argued in the report of the United Nations Millennium Project, the appropriate amount of debt reduction should be measured against explicit development objectives, such as those enshrined in the Millennium Development Goals.

8. Stresses that debt relief can play a key role in liberating resources that should be directed towards activities consistent with poverty eradication, sustained economic growth and sustainable development and the achievement of the internationally agreed development goals, including the Millennium Development Goals, and in this regard urges countries to direct those resources freed through debt relief, in particular through debt cancellation and reduction, towards these objectives

11. Stresses that debt relief can play a key role in liberating resources that should be directed towards activities consistent with poverty eradication, sustained economic growth and sustainable development and the achievement of the internationally agreed development goals, including the Millennium Development Goals, and in this regard urges countries to direct those resources freed through debt relief, in particular through debt cancellation and reduction, towards those objectives

13. Stresses that debt relief can play a key role in liberating resources that should be directed towards activities consistent with poverty eradication, sustained economic growth, sustainable development and the achievement of the internationally agreed development goals, including the Millennium Development Goals, and in this regard urges countries to direct those resources freed through debt relief, in particular through debt cancellation and reduction, towards those objectives

Stresses that debt relief can play a key role in liberating resources that should be directed towards activities consistent with poverty eradication, sustained economic growth and sustainable development and the achievement of the internationally agreed development goals, including the Millennium Development Goals, and in this regard urges countries to direct those resources freed through debt relief, in particular through debt cancellation and reduction, towards these objectives

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.

For countries which have debt sustainability problems and are committed to policies implemented in the framework of IMF programmes that will allow an exit from future Paris Club reschedulings, the Paris Club will apply a comprehensive debt treatment, including flow treatment, stock reprofiling or stock reduction.

My Petersen Institute colleague Carmen Reinhardt suspects that financial repression will be the main debt reduction method governments will rely on regulation and manipulation to force savers to pay down public debt through negative real returns on their bond investments.

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.