Results 1 to 2 of 2

Thread: News About Forgiveness

  1. #1

    News About Forgiveness

    This is not the forgiveness demanded on August 13, 2001, curing Judgment 9/11 (30 Days).

    PRESS RELEASE

    A COORDINATED APPROACH AMONG CREDITORS TO PROVIDE
    DEBT SERVICE SUSPENSION FOR THE POOREST COUNTRIES



    Paris Club creditors recognize that the scale of the COVID-19 health crisis is generating unprecedented challenges for the global economy, in particular for the poorest countries.

    Paris Club members acknowledge the exceptional scale of the financing needs that the poorest countries are facing as a result of the COVID-19 health and economic crisis. In such a context, Paris Club members consider that an extraordinary and well-coordinated international response is critical to allow the poorest countries to dedicate all available resources to increase social, health or economic spending in response to this crisis.

    For this purpose, Paris Club creditors support a coordinated time-bound suspension of debt service payments for the poorest countries that request forbearance. Under this initiative, Paris Club members and the G20 have agreed a common term sheet providing the key features for this initiative (cf. attachment). This measure will also contribute to help eligible countries to improve debt transparency and debt management.

    Paris Club creditors underline that all bilateral official creditors will participate in this initiative. They call on private creditors to participate in the initiative on comparable terms and intend to closely coordinate with the Institute of international Finance to this end. Paris Club creditors ask multilateral development banks to further explore the options for the suspension of debt service payments over the suspension period, while maintaining their current rating and low cost of funding.

    Paris Club creditors will continue to closely coordinate with other creditors in the implementation phase of this initiative. They expect that the resources freed by this initiative will benefit directly to the people in the poorest countries affected by the COVID-19 crisis.

    Annex

    Debt service suspension initiative for the poorest countries


    Scope of beneficiary countries

    Beneficiary countries will include:

    (i) all IDA-countries, that are current on any debt service to the IMF and the World Bank, and;
    (ii) all least developed countries as defined by the United Nations, that are current on any debt service to the IMF and the World Bank.

    Setting the right incentives

    Access to the initiative will be limited to countries which:

    (i) have made a formal request for debt service suspension from creditors, and;
    (ii) are benefiting from, or have made a request to IMF Management for, IMF financing including emergency facilities (RFI/RCF).

    Each beneficiary country will be required to commit:

    • to use the created fiscal space to increase social, health or economic spending in response to the crisis. A monitoring system is expected to be put in place by the IFIs ;

    • to disclose all public sector financial commitments (debt)[1], respecting commercially sensitive information. Technical Assistance is expected to be provided by the IFIs as appropriate to achieve this;

    • to contract no new non-concessional debt during the suspension period, other than agreements under this initiative or in compliance with limits agreed under the IMF Debt Limit Policy (DLP) or WBG policy on non-concessional borrowing.

    Scope of creditors

    All official bilateral creditors will participate in the initiative.

    Private creditors will be called upon publicly to participate in the initiative on comparable terms.

    Multilateral development banks will be asked to further explore options for the suspension of debt service payment over the suspension period, while maintaining their current rating and low cost of funding.

    Duration of the suspension of payment
    The suspension will last until end-2020.

    Creditors will consider a possible extension during 2020, taking into account a report on the liquidity needs of eligible countries by the World Bank and IMF.

    Perimeter of maturities and cut-off date

    The suspension period will start on May 1st, 2020.

    Both principal repayments and interest payments will be suspended.

    A cut-off date protecting new financing in case of possible future restructuring will be set on March 24th, 2020.

    Modalities for the debt service suspension

    The suspension of payments will be NPV-neutral.
    The repayment period will be 3 years, with a one-year grace period (4 years total).
    Treatment will be achieved either through rescheduling or refinancing.

    Implementation process

    Creditors will implement, consistent with their national laws and internal procedures, the debt service suspension initiative as agreed in this term sheet to all eligible countries that make a request.

    Creditors will continue to closely coordinate in the implementation phase of this initiative. If needed, creditors will complement the elements in this term sheet as appropriate.
    However, that is about the time the HIPC Program kicked into gear.


    Name:  Immanentize the Eschaton.jpg
Views: 153
Size:  83.3 KB
    Last edited by David Merrill; 04-16-20 at 03:05 PM. Reason: revealed immenentizing the eschaton

  2. #2
    Redemption can also be achieved by learning, implementation, and mastery of the banking function .....

    Money is the current or flow.

    The bank is the battery or storage.
    Last edited by shikamaru; 04-19-20 at 11:41 AM.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •