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.
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