In June 2004, the Evian approach was applied to examine the debt of Gabon, and the Debt Sustainability Analysis concluded that Gabon's debt is sustainable in the short term.

Long term sustainability of debt depends mainly on the growth and export prospects of debtor 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.

The Paris Club Agreement with Iraq of November 2004 represents a significant step towards long term debt sustainability.

Although US federal debt is projected to rise at an unsustainable rate in the long term, the right solution is not fiscal belt tightening now, but rather a credible plan to stabilize the debt GDP ratio gradually as the economy recovers. Indeed, as Fed Chairman Ben Bernanke recently observed, preventing a severe fiscal contraction in 2013 will boost growth, reduce the near term deficit, and help to solve the long term debt problem.

We welcome the cancellation of the debt of the most heavily indebted poor countries, but we believe that a long term solution of the debt problem of developing countries should not obstruct investment.

Nonetheless, Europe needs to be much more generous in permanently writing down debt and, even more urgently, in reducing short term repayment flows. The first is necessary to reduce long term uncertainty the second is essential to facilitate near term growth.

He argued at that time, and rightly in my view, that short term tax reductions and transfers would be partly saved, not spent, and that public debt would multiply and create a long term shadow over the fiscal balance and the economy. Even if interest rates are currently low, he noted, they will rise, thereby increasing the debt service burden on the newly accumulated debt.

Burundi's foreign debt had recently been cancelled and there was every indication that the economy would recover in the short term.

The long term consequences of the resulting surge in fiscal deficits are serious. If the deficits are monetized by central banks, inflation will follow the short term deflationary pressures if they are financed by debt, the long term solvency of some governments may be at stake unless medium term fiscal discipline is restored.

Recognizing that commodity prices are an important element for heavily indebted poor countries that are commodity dependent in maintaining long term debt sustainability,

We urge all creditors to support the call for intensified debt relief, without jeopardizing the long term viability of the international financial institutions.

16. We are also determined to deal comprehensively and effectively with the debt problems of low and middle income developing countries, through various national and international measures designed to make their debt sustainable in the long term.

Conventional monetary policy operates by altering short term interest rates, which includes the central bank buying and selling short term government debt. No intervention in the foreign exchange market buying and selling foreign currency is involved.

16. Stresses the need to significantly address the debt problems of middle income developing countries, and in this regard stresses the importance of the Evian approach of the Paris Club as a practical means to address this issue, and notes that the current debt sustainability framework used to analyse the debt situation of middle income countries focuses mostly on medium term debt dynamics

The value of innovative sources of financing for development had been recognized and agreement had been reached on considering additional measures to ensure long term debt sustainability through increased grant based financing, cancellation of the official multilateral and bilateral debt of Heavily Indebted Poor Countries, and debt relief or restructuring for low income and middle income developing countries with unsustainable debt burdens.

Recognizing that commodity prices are an important element for heavily indebted poor countries that are dependent on commodities for maintaining long term debt sustainability,

Stronger, longer term financing might have allowed these firms to survive. If a Tobin tax induced financial institutions to finance themselves with more longer term debt and less overnight repo, it could play a significant stabilizing role.

Third, while ECB policies keep borrowing costs lower, private and public debt in the periphery countries, as a share of GDP, is high and still rising, because the denominator of the debt ratio nominal GDP is barely increasing. Thus, debt sustainability will remain an issue for these economies over the medium term.

5. Stresses the need to ensure the long term financial viability of the Institute as it relates to its debt and rent and maintenance costs

Third, Germany s long term interest rates would be unaffected, because Germany would neither be guaranteeing the debt conversion scheme nor backing the ECB s bond issues.

But, by lowering long term interest rates, central bank purchases of government debt can help contain government debt service. In this way, QE can keep solvent a government that otherwise would be insolvent a nightmare scenario for a central bank.

Stressing the determination expressed in the Millennium Declaration to deal comprehensively and effectively with the debt problems of low and middle income developing countries, through various national and international measures designed to make their debt sustainable in the long term,

The expert from the IMF gave a presentation on the recently adopted Multilateral Debt Relief Initiative (MDRI) to help the Heavily Indebted Poor Countries (HIPCs) meet the Millennium Development Goals, foster longer term debt sustainability, and improve balance of payments positions.

Meanwhile, the bond market s concern over fiscal deficits and debt dynamics is driving these countries borrowing costs higher. Short term and long term policies are therefore closely related unless temporary stopgaps are combined with fundamental long term structural reform, another disaster like the current one or worse will become inevitable.

Invites donor countries, taking into account country specific debt sustainability analyses, to continue their efforts to increase bilateral grants to developing countries, which could contribute to debt sustainability in the medium to long term, and recognizes the need for countries to be able to invest, inter alia, in health and education while maintaining debt sustainability

One notable exception is the increase in total long term debt servicing in sub Saharan Africa by an estimated 3 billion (26.6 per cent) in 2004.

(c) Reduce barriers to long term, non debt creating capital flows, especially FDI, and the costs to migrants of sending their remittances through sanctioned institutional channels.

In October 2003, Paris Club creditors agreed on the Evian approach to deal with the debt of non HIPC low income and middle income countries, taking into account not only the financing gaps but also the medium term debt sustainability of these countries.

Many centrists agree that an optimal fiscal policy would feature short term stimulus, a multi year medium term deficit reduction plan, and measures to reduce long term liabilities, especially if retrenchment protected growth oriented public sector investments. But that is difficult to achieve in a context of deleveraging and fixation on debt.

The Argentine Government undertook a first debt swap in June 2001 government bonds with a face value of 29.5 billion were voluntarily exchanged for longer term instruments.

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.

Stock exchanges are another source, as are tax collection foreign direct investment debt forgiveness, which also releases some money long term bonds borrowing and finally, pension funds.

19. Invites donor countries, taking into account country specific debt sustainability analyses, to continue their efforts to increase bilateral grants to developing countries, which could contribute to debt sustainability in the medium to long term, and recognizes the need for countries to be able to invest, inter alia, in health and education while maintaining debt sustainability

19. Invites donor countries, taking into account country specific debt sustainability analyses, to continue their efforts to increase bilateral grants to developing countries, which could contribute to debt sustainability in the medium to long term, and recognizes the need for countries to be able to invest, inter alia, in health and education while maintaining debt sustainability

21. Invites donor countries, taking into account country specific debt sustainability analyses, to continue their efforts to increase bilateral grants to developing countries, which could contribute to debt sustainability in the medium to long term, and recognizes the need for countries to be able to invest, inter alia, in health and education while maintaining debt sustainability

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.

Invites donor countries, taking into account country specific debt sustainability analyses, to continue their efforts to increase bilateral grants to developing countries, which could contribute to debt sustainability in the medium to long term, and stresses the need to take steps to ensure that resources provided for debt relief do not detract from official development assistance resources

23. Recognizes the difficulties of heavily indebted middle income developing countries in meeting their external debt and debt servicing obligations, and notes the worsening situation in some of them in the context, inter alia, of greater liquidity constraints, which may require debt treatment through various national and international measures designed to assist those countries to make their debt burden sustainable in the long term and to combat poverty effectively

26. Recognizes the difficulties faced by heavily indebted middle income developing countries in meeting their external debt and debt servicing obligations, and notes the worsening situation in some of them in the context, inter alia, of greater liquidity constraints, which may require debt treatment through various national and international measures designed to assist those countries in making their debt burden sustainable in the long term and in combating poverty effectively

Under these circumstances, budgetary recklessness is a virtue, at least in the short term. In the medium term, once growth revives, debt can be paid down and the financial sector curbed so that it does not inflict another crisis on the world.

Greece s debt crisis was a clear warning that European policymakers must not allow public debt to pile up indefinitely. The EU was right to react decisively to ensure the euro s stability by providing short term assistance to Greece and establishing the European Financial Stabilization Mechanism.

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.

So, the prescription goes, why not generate higher inflation for a while? This will surprise fixed income investors who agreed in the past to lend long term at low rates, bring down the real value of debt, and eliminate debt overhang, thereby re starting growth.

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.