Cancelling Developing Countries’ Debt. Options and Possibilities. Infid International Conference Jakarta, Indonesia November 17th, 2005. Status-quo after 2005. HIPC and G8 multilateral debt deal IFI Debt Sustainability Framework Paris Club and Evian approach. HIPC.
Cancelling Developing Countries’ Debt. Options and Possibilities
Infid International Conference
November 17th, 2005
-> Difficult for IMF to refuse approval of reviews
-> US$ 83bn foreign public debt, ow ca 53bn Paris Club.
-> Public sector debt 54% of GDP, ow 32% foreign
-> Debt service 6-7% GDP (ca US$ 7bn, to pick up in 2006)
-> Equivalent to 53% of non-oil revenues, and 42% of primary spending
-> Social spending likely to contract by 30% as debt service picks up 2006 with peak in 2008
-> the interest bill alone accounts for about one fifth of total spending
-> Efficient, direct way to liberate resources for poverty-reducing social spending
-> Fits the principle of “fair burden sharing” between debtors and creditors enshrined in Millennium Declaration